NYSE$MEI

Methode Electronics Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Methode reported record sales and income from operations in the second quarter of fiscal year 2021.

Methode Electronics reported a record quarter with net sales of $300.8 million and income from operations of $45.0 million. Net income was $38.6 million, or $1.01 per diluted share. The increase in net sales was largely due to higher sales in the Automotive segment and favorable foreign currency translation.

  • Net sales were a record $300.8 million.
  • Electric and hybrid vehicle applications were over 9 percent of net sales.
  • Income from operations was a record $45.0 million, or 15.0 percent of net sales.
  • Net income was $38.6 million, or $1.01 per diluted share, and included $3.5 million of restructuring costs, or $0.09 per diluted share, and $2.8 million of government assistance, or $0.07 per diluted share.

Headline financials

Total Revenue

$301M

Previous: $257M+17.0%
EPS (adj)

$1.03

Previous: $0.64+60.9%
Capital Expenditures

-$15.2M

Previous: -$26.8M+43.3%
Free Cash Flow

$41.5M

Previous: $41M+1.2%
Net Income

$38.6M

Previous: $23.8M+62.2%
Operating Income

$45M

Previous: $30.7M+46.6%
Gross Profit

$80.8M

Previous: $68.6M+17.8%
Cash & Equivalents

$242M

Previous: $95.6M+153.5%
Total Assets

$1.49B

Previous: $1.28B+16.1%
Stock-Based Comp

$1M

Previous: $1.5M-33.3%

Revenue & EPS history

Methode · Revenue · Quarterly

$301M

Q2 2021+17%vs Q2 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Methode · $300M total across 3 segments · Q2 2021

  • Automotive
    $216M+19.8%
  • Industrial
    $67.9M+4.6%
  • Interface
    $16.4M+37.8%

Forward guidance

For the fiscal third quarter of 2021, the company expects net sales in to be in the range of $265 to $285 million and diluted earnings per share to be in the range of $0.69 to $0.85 based on the near-term outlook, which is subject to disruption at any time due to a variety of factors including the ongoing COVID-19 pandemic situation.

Tailwinds

  • Demand experienced in the second quarter.
  • Demand seen early in the third quarter.
  • Order book continues to build in EV programs.
  • Three-pronged approach to EV with user interface.
  • Three-pronged approach to EV with power distribution and LED lighting solutions.

Headwinds

  • Market uncertainty due to the pandemic.
  • Subject to disruption at any time due to a variety of factors.
  • Ongoing COVID-19 pandemic situation.
  • Unspecified near-term outlook risks.
  • Potential for sales and EPS to be affected.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

-1.1%

Avg return

Earnings day

-3.2%

Avg return

5 days after

-6.2%

Avg return

30 days after

46%

30 / 65 earnings

Positive

+46.2%

Q4 2024

Best reaction

-32.9%

Q3 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026
Q3 2026-12.6%-22.3%-22.5%
Q2 2026-11.2%-21.5%-22.9%
Q1 2026+12.8%+9.1%-7.8%
Q4 2025+0.1%-2.2%-27.2%
Q3 2025-28.9%-34.7%-41.1%
Q2 2025+9.6%+12.6%+5.9%
Q1 2025-3.2%-3.0%+10.1%
Q4 2024+46.2%+47.1%+7.2%
Q3 2024-32.9%-37.0%-42.8%
Q2 2024-11.8%-12.6%-14.0%
Q1 2024-22.2%-24.1%-21.8%
Q4 2023-12.7%-15.3%-25.0%
Q3 2023-9.8%-11.7%-12.4%
Q2 2023+10.0%+5.5%-2.9%
Q1 2023-2.8%-4.9%-8.2%
Q4 2022-0.1%-10.9%-18.5%
Q3 2022-5.3%-7.8%-5.0%
Q2 2022+0.9%+1.3%+9.7%
Q1 2022-10.3%-8.2%-8.7%
Q4 2021+1.9%+2.3%-4.3%
Q3 2021+5.6%+10.6%+6.6%
Q2 2021+5.0%+6.4%+7.1%
Q1 2021-2.4%-4.8%-4.8%
Q4 2020-7.5%-6.0%-6.8%
Q3 2020+2.0%-4.3%-15.8%
Q2 2020+14.3%+13.5%+8.6%
Q1 2020+11.7%+11.2%+19.6%
Q4 2019-1.2%+0.6%+7.8%
Q3 2019+6.0%+9.6%+7.5%
Q2 2019-23.0%-24.8%-22.8%
Q1 2019-2.3%-1.5%-10.8%
Q4 2018-11.2%-8.4%-13.5%
Q3 2018+1.0%+1.1%-0.9%
Q2 2018-7.3%-12.1%-9.3%
Q1 2018+0.9%-2.1%+7.1%
Q4 2017+4.8%+5.3%+4.8%
Q3 2017+2.7%+0.8%+5.2%
Q2 2017+9.2%+9.4%+5.3%
Q1 2017-3.7%-2.8%-4.6%
Q4 2016+6.0%+6.6%+15.2%
Q3 2016-1.3%
Q2 2016-8.0%
Q1 2016+17.3%
Q4 2015-29.4%
Q3 2015+6.1%
Q2 2015-16.7%
Q1 2015+19.0%
Q4 2014+11.4%
Q3 2014-14.9%
Q2 2014+43.4%
Q1 2014+35.5%
Q4 2013+10.1%
Q3 2013+5.2%
Q2 2013-6.7%
Q1 2013+4.9%
Q4 2010+7.6%
Q4 2012+7.6%
Q3 2012-2.6%
Q3 2011-2.6%
Q2 2011-6.9%
Q2 2012-6.9%
Q1 2011-18.3%
Q1 2012-18.3%
Q4 2011-18.3%
Q3 2010-16.6%

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