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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.

Total Revenue
$301M
Previous year: $257M
+17.0%
EPS
$1.03
Previous year: $0.64
+60.9%
Gross Profit
$80.8M
Previous year: $68.6M
+17.8%
Cash and Equivalents
$242M
Previous year: $95.6M
+153.5%
Free Cash Flow
$36.7M
Previous year: $35.1M
+4.6%
Total Assets
$1.49B
Previous year: $1.28B
+16.1%

Methode

Methode

Methode Revenue by Segment

Methode Revenue by Geographic Location

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.
  • Potential for sales and EPS to be affected.

Revenue & Expenses

Visualization of income flow from segment revenue to net income