Methode Q2 2023 Earnings Report
Key Takeaways
Methode Electronics reported record sales of $315.9 million for the second quarter of fiscal 2023, with net income of $27.6 million, or $0.75 per diluted share. The company's performance was driven by strong sales in the Industrial segment and electric and hybrid vehicle applications.
Net sales reached a record $315.9 million, with electric and hybrid vehicle applications accounting for 20%.
The Industrial segment achieved record net sales of $103.8 million.
Net income was $27.6 million, or $0.75 per diluted share.
The company repurchased 508,179 shares of its common stock for $19.7 million.
Methode
Methode
Methode Revenue by Segment
Forward Guidance
The company updated its expectations for fiscal year 2023 net sales to be in the range of $1,170 to $1,200 million and for diluted earnings per share to be in a range of $2.70 to $2.90.
Positive Outlook
- Strong sales driven by strategic efforts in power and lighting solutions.
- Cost recovery actions are gaining traction.
- Sequential earnings improvement over the first quarter.
- Strong quarter of EV program awards.
- Expecting another record year for sales and continued growth in EV applications.
Challenges Ahead
- Ongoing inflationary cost environment.
- Geopolitical risks.
- Semiconductor shortages.
- Increased foreign currency headwind.
- Additional uncertainty has been infused into our near-term outlook.
Revenue & Expenses
Visualization of income flow from segment revenue to net income