Methode Q3 2022 Earnings Report
Key Takeaways
Methode Electronics reported net sales of $291.6 million and net income of $29.4 million, or $0.78 per diluted share, for the third quarter of fiscal 2022. The company also repurchased 460,161 shares of its common stock for $21.3 million and was awarded new programs with expected annual sales of over $100 million.
Net sales were $291.6 million.
Electric and hybrid vehicle applications were a record 19 percent of net sales.
Net income was $29.4 million, or $0.78 per diluted share, including restructuring costs and discrete tax benefits.
Company purchased 460,161 shares of its common stock for $21.3 million.
Methode
Methode
Methode Revenue by Segment
Forward Guidance
The company increased its expectation for net sales to be in the range of $1,160 to $1,170 million and narrowed its diluted earnings per share to a range of $3.05 to $3.15 for fiscal year 2022.
Positive Outlook
- Increased net sales expectation due to premium freight cost recovery.
- Diluted earnings per share narrowed to a higher range.
- Strong award bookings of over $100 million, mostly driven by EV programs.
- Continued execution on balanced capital allocation strategy.
- Solid sales driven by a strong performance in the Industrial segment.
Challenges Ahead
- Guidance is subject to disruption due to the impact from the COVID-19 pandemic.
- Ongoing semiconductor shortages could impact guidance.
- Other supply chain disruptions could impact guidance.
- Short and long-term supply chain rationalization and restructuring efforts could impact guidance.
- Significant demand headwind in auto, particularly in Europe.
Revenue & Expenses
Visualization of income flow from segment revenue to net income