CHICAGO - Methode Electronics, Inc. (NYSE: NYSE:MEI), a global supplier of custom-engineered solutions for user interface, LED lighting, and power distribution, has reported its financial outcomes for the fourth quarter ended April 27, 2024. Shares of Methode Electronics rose by 15% following the announcement.
The company experienced a net loss of $57.3 million, or $1.63 per diluted share, with an adjusted net loss of $7.9 million, or $0.23 per diluted share.
Methode's reported fourth-quarter earnings per share (EPS) of -$0.23 fell short of the analyst consensus estimate of -$0.20. However, the company's revenue for the quarter was $277.3 million, surpassing the consensus estimate of $266.95 million. The revenue figure also reflects a decline from the $301.2 million reported in the same quarter of the previous fiscal year.
Interim CEO Kevin Nystrom commented on the results, highlighting that sales rebounded from the third quarter but were down YoY due to auto program roll-offs and ongoing demand weakness in the e-bike market. He also noted that operational inefficiencies in the Automotive segment contributed to the adjusted net loss. Despite these challenges, Nystrom emphasized the company's strong cash flow and new program awards during the quarter, as well as the lowest net debt level reported in the four quarters of the fiscal year.
Looking ahead, Methode Electronics anticipates fiscal 2025 to be a year of repositioning, with net sales expected to be similar to fiscal 2024 and adjusted pre-tax income approaching breakeven. The company projects a stronger second half for fiscal 2025, with the first quarter expected to mirror the negative results of the fourth quarter of fiscal 2024. For fiscal 2026, Methode forecasts net sales to exceed those of fiscal 2025, with a significant improvement in pre-tax income.
The company's guidance for fiscal 2025 and 2026 is subject to various factors, including the successful launch of new programs, EV program take rates, cost recovery actions, inflation, global economic instability, supply chain disruptions, potential restructuring, impairments, and any acquisitions or divestitures.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.