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Oct 31, 2020
Methode Q2 2021 Earnings Report
Methode reported record sales and income from operations in the second quarter of fiscal year 2021.
Key Takeaways
Methode Electronics reported a record quarter with net sales of $300.8 million and income from operations of $45.0 million. Net income was $38.6 million, or $1.01 per diluted share. The increase in net sales was largely due to higher sales in the Automotive segment and favorable foreign currency translation.
Net sales were a record $300.8 million.
Electric and hybrid vehicle applications were over 9 percent of net sales.
Income from operations was a record $45.0 million, or 15.0 percent of net sales.
Net income was $38.6 million, or $1.01 per diluted share, and included $3.5 million of restructuring costs, or $0.09 per diluted share, and $2.8 million of government assistance, or $0.07 per diluted share.
Revenue by Segment
Forward Guidance
For the fiscal third quarter of 2021, the company expects net sales in to be in the range of $265 to $285 million and diluted earnings per share to be in the range of $0.69 to $0.85 based on the near-term outlook, which is subject to disruption at any time due to a variety of factors including the ongoing COVID-19 pandemic situation.
Positive Outlook
- Demand experienced in the second quarter.
- Demand seen early in the third quarter.
- Order book continues to build in EV programs.
- Three-pronged approach to EV with user interface.
- Three-pronged approach to EV with power distribution and LED lighting solutions.
Challenges Ahead
- Market uncertainty due to the pandemic.
- Subject to disruption at any time due to a variety of factors.
- Ongoing COVID-19 pandemic situation.
- Unspecified near-term outlook risks.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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