NYSE$MEI

Methode Electronics Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Methode reported record sales and earnings driven by power and lighting solutions.

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.

Headline financials

Total Revenue

$316M

Previous: $296M+6.9%
EPS (adj)

$0.75

Previous: $0.72+4.2%
Adjusted EBITDA

$46.1M

Previous: $47.4M-2.7%
Capital Expenditures

-$18M

Previous: -$21.3M+15.5%
Free Cash Flow

$10.1M

Previous: $15.4M-34.4%
Net Income

$27.6M

Previous: $27.5M+0.4%
Operating Income

$32.8M

Previous: $33.2M-1.2%
Gross Profit

$74.1M

Previous: $69.2M+7.1%
Cash & Equivalents

$130M

Previous: $177M-26.9%
Total Assets

$1.39B

Previous: $1.43B-2.5%
Stock-Based Comp

$2.7M

Previous: $2.6M+3.8%

Revenue & EPS history

Methode · Revenue · Quarterly

$316M

Q2 2023+6.9%vs Q2 2022
Beat estimate in 10 of 16 quarters(63%)
ActualEstimate

Revenue by segment

Methode · $315M total across 3 segments · Q2 2023

  • Automotive
    $197M+0.5%
  • Industrial
    $104M+28.6%
  • Interface
    $14.1M-21.7%

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.

Tailwinds

  • 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.

Headwinds

  • Ongoing inflationary cost environment.
  • Geopolitical risks.
  • Semiconductor shortages.
  • Increased foreign currency headwind.
  • Additional uncertainty has been infused into our near-term outlook.

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 2023

Historical avgQ2 2023

-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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