•
May 01, 2021

Methode Q4 2021 Earnings Report

Methode reported Q4 2021 financial results, highlighting sales growth in electric and hybrid vehicle applications and a record fiscal year net sales.

Key Takeaways

Methode Electronics reported a net sales increase to $301.0 million for Q4 2021, up from $210.6 million in the same quarter of fiscal 2020. Net income increased slightly to $31.1 million, or $0.81 per diluted share, compared to $30.1 million, or $0.79 per diluted share, in the same quarter of the previous year. The company experienced higher sales in electric and hybrid vehicle products, but faced increased material and logistic costs due to supply chain shortages.

Net sales were $301.0 million with a favorable foreign currency impact of $11.5 million.

Electric and hybrid vehicle applications accounted for 13% of net sales.

Net income reached $31.1 million, or $0.81 per diluted share.

Free cash flow was $31.2 million, impacted by higher working capital needs.

Total Revenue
$301M
Previous year: $211M
+42.9%
EPS
$0.81
Previous year: $0.79
+2.5%
Adjusted EBITDA
$50.8M
Previous year: $48.3M
+5.2%
Tax Expense
$5.5M
Previous year: $10M
-45.0%
Gross Profit
$75.6M
Previous year: $59.2M
+27.7%
Cash and Equivalents
$233M
Previous year: $217M
+7.3%
Free Cash Flow
$31.2M
Previous year: $32.2M
-3.1%
Total Assets
$1.47B
Previous year: $1.37B
+7.0%

Methode

Methode

Methode Revenue by Segment

Forward Guidance

The company expects net sales for the fiscal first quarter to be in the range of $285 to $300 million and diluted earnings per share to be in the range of $0.68 to $0.80. For the fiscal year 2022, the company expects net sales in to be in the range of $1,175 to $1,235 million and diluted earnings per share to be in the range of $3.35 to $3.75.

Challenges Ahead

  • Guidance for the first quarter and the full year are subject to disruption due to a variety of factors including the ongoing semiconductor shortage and other supply chain disruptions.

Revenue & Expenses

Visualization of income flow from segment revenue to net income