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Jul 31, 2021

Methode Q1 2022 Earnings Report

Methode's Q1 2022 financial results were reported, showing increased net sales and income from operations.

Key Takeaways

Methode Electronics reported a strong first quarter with net sales up 51% and income from operations up 147%. The company reaffirmed its full-year guidance, but noted potential challenges from ongoing supply chain disruptions.

Net sales increased by 51% to $287.8 million.

Electric and hybrid vehicle applications accounted for 16% of net sales.

Income from operations rose by 147% to $34.1 million.

The company repurchased 157,513 shares of its common stock for $7.6 million.

Total Revenue
$288M
Previous year: $191M
+50.8%
EPS
$0.76
Previous year: $0.41
+85.4%
Adjusted EBITDA
$48.5M
Previous year: $29.3M
+65.5%
Tax Expense
$5.7M
Interest Expense
$1.1M
Previous year: $1.6M
-31.3%
Gross Profit
$71.7M
Previous year: $45.1M
+59.0%
Cash and Equivalents
$208M
Previous year: $211M
-1.5%
Free Cash Flow
-$6.2M
Previous year: $4.8M
-229.2%
Total Assets
$1.46B
Previous year: $1.42B
+2.9%

Methode

Methode

Methode Revenue by Segment

Forward Guidance

Methode reaffirmed its expectation for fiscal year 2022 net sales to be in the range of $1,175 to $1,235 million and for diluted earnings per share to be in the range of $3.35 to $3.75. The guidance is subject to disruption due to a variety of factors including the ongoing semiconductor shortage and other supply chain disruptions.

Challenges Ahead

  • Ongoing supply chain challenges
  • Semiconductor shortages
  • Potential for performance below the midpoint of guidance ranges
  • Dynamic and challenging situation
  • Unspecified variety of factors

Revenue & Expenses

Visualization of income flow from segment revenue to net income