Methode Q2 2022 Earnings Report
Key Takeaways
Methode Electronics reported a decrease in net sales by 1.8% to $295.5 million, with net income decreasing to $27.5 million, or $0.72 per diluted share. The company experienced lower sales in the Automotive segment due to semiconductor shortages, but saw strong performance in the Industrial segment. Methode also executed $34.8 million in share buybacks during the quarter.
Net sales were $295.5 million, a 1.8% decrease compared to the same quarter of fiscal 2021.
Net income was $27.5 million, or $0.72 per diluted share, down from $38.6 million, or $1.01 per diluted share, in the same quarter of fiscal 2021.
Electric and hybrid vehicle applications accounted for 16% of net sales, marking a record in dollar terms.
The company purchased 807,516 shares of its common stock for $34.8 million during the quarter.
Methode
Methode
Methode Revenue by Segment
Forward Guidance
For fiscal year 2022, the company revised its expectation for net sales to be in the range of $1,140 to $1,160 million and diluted earnings per share to a range of $3.00 to $3.20, subject to ongoing supply chain disruptions and the COVID-19 pandemic.
Challenges Ahead
- Impact from the COVID-19 pandemic
- Ongoing semiconductor shortage
- Other supply chain disruptions
- Short and long-term supply chain rationalization and mitigation efforts
- Auto demand recovery will take more time
Revenue & Expenses
Visualization of income flow from segment revenue to net income