NYSE$MEI

Methode Electronics Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Methode reported financial results, achieving record electric and hybrid vehicle application sales and awarding over $100 million in new programs.

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.

Headline financials

Total Revenue

$292M

Previous: $295M-1.3%
EPS (adj)

$0.79

Previous: $0.83-4.8%
Adjusted EBITDA

$47.9M

Previous: $51.3M-6.6%
Capital Expenditures

-$29.6M

Previous: -$20.1M-47.3%
Free Cash Flow

$27.2M

Previous: $124M-78.0%
Net Income

$29.4M

Previous: $31.9M-7.8%
Operating Income

$29.8M

Previous: $35.4M-15.8%
Gross Profit

$69.1M

Previous: $72.6M-4.8%
Cash & Equivalents

$153M

Previous: $219M-30.0%
Total Assets

$1.41B

Previous: $1.44B-2.3%
Stock-Based Comp

$2.6M

Previous: $2.4M+8.3%

Revenue & EPS history

Methode · Revenue · Quarterly

$292M

Q3 2022-1.3%vs Q3 2021
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Methode · $291M total across 3 segments · Q3 2022

  • Automotive
    $195M-7.2%
  • Industrial
    $80M+20.3%
  • Interface
    $15.2M-13.6%

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.

Tailwinds

  • 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.

Headwinds

  • 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.

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 2022

Historical avgQ3 2022

-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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