NYSE$MEI

Methode Electronics Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Reported fiscal third quarter 2021 financial results, featuring electric and hybrid vehicle application growth, strong free cash flow, and significant debt reduction.

Methode Electronics reported net sales of $295.3 million and net income of $31.9 million, or $0.83 per diluted share, for the fiscal third quarter ended January 30, 2021. The company experienced growth in electric and hybrid vehicle applications and generated strong free cash flow, leading to significant debt reduction.

  • Net sales were $295.3 million.
  • Electric and hybrid vehicle applications were over 12 percent of net sales.
  • Net income was $31.9 million, or $0.83 per diluted share.
  • Debt was $244.6 million, compared to $352.1 million at the end of fiscal 2020.

Headline financials

Total Revenue

$295M

Previous: $286M+3.3%
EPS (adj)

$0.83

Previous: $1.05-21.0%
Adjusted EBITDA

$51.3M

Previous: $59.8M-14.2%
Capital Expenditures

-$20.1M

Previous: -$34.9M+42.4%
Free Cash Flow

$124M

Previous: $47.7M+159.3%
Net Income

$31.9M

Previous: $41.2M-22.6%
Operating Income

$35.4M

Previous: $41.5M-14.7%
Gross Profit

$72.6M

Previous: $79.3M-8.4%
Cash & Equivalents

$219M

Previous: $79.9M+173.7%
Total Assets

$1.44B

Previous: $1.28B+12.6%
Stock-Based Comp

$2.4M

Previous: $1.6M+50.0%

Revenue & EPS history

Methode · Revenue · Quarterly

$295M

Q3 2021+3.3%vs Q3 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Methode · $295M total across 3 segments · Q3 2021

  • Automotive
    $211M+0.3%
  • Industrial
    $66.5M-8.9%
  • Interface
    $17.6M+18.9%

Forward guidance

For the fiscal fourth quarter of 2021, the company expects net sales in to be in the range of $270 to $300 million and diluted earnings per share to be in the range of $0.60 to $0.82, which is subject to disruption due to a variety of factors including the ongoing semiconductor shortage and COVID-19 pandemic situations. The lower end of the guidance ranges contemplates additional supply chain disruptions.

Tailwinds

  • Net sales are expected to be in the range of $270 to $300 million.
  • Diluted earnings per share to be in the range of $0.60 to $0.82.
  • Order book for EV programs gives us the confidence to increase our projection for fiscal 2022 sales from EV applications to a mid-teens percentage.
  • Subject to resolution of the supply chain challenges by mid-calendar year, we anticipate Methode’s consolidated fiscal 2022 organic sales to grow in excess of 10%.

Headwinds

  • Guidance is subject to disruption due to a variety of factors including the ongoing semiconductor shortage and COVID-19 pandemic situations.
  • The lower end of the guidance ranges contemplates additional supply chain disruptions.
  • Company will continue to face near term market uncertainty due to the semiconductor shortage.
  • Company will face other supply chain and related factory inefficiencies.
  • Weather-related supply chain disruptions are driving our wide guidance range.

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 Q3 2021

Historical avgQ3 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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