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Jan 29, 2022
Methode Q3 2022 Earnings Report
Methode reported financial results, achieving record electric and hybrid vehicle application sales and awarding over $100 million in new programs.
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
Revenue by Segment
Automotive Revenue
CapyFin.comIndustrial Revenue
CapyFin.comInterface Revenue
CapyFin.com 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