Methode Electronics boosts guidance, shares jump

Methode Electronics 2Q net income falls 15 percent but company boosts guidance, shares soar

Associated Press

NEWS: Methode Electronics Inc. said Thursday that its fiscal second-quarter net income fell 15 percent due to a one-time legal settlement it booked in the prior-year quarter. The electronics part maker's results topped expectations, it boosted its full-year forecast and its shares hit an all-time high.

DETAILS: The company, which is based in Chicago, makes electronic components such as switches, sensors and signals used in automobiles and power products. Methode Electronics said that it saw sales in its automotive, interconnect and power products segments rise.

NUMBERS: Net income slipped to $19.8 million, or 51 cents per share, in the quarter ending Oct. 26. That compares with net income of $23.4 million, or 62 cents per share, in the same quarter a year ago. Excluding a $20 million payment it received from a legal settlement, the company earned 13 cents per share in last year's second quarter.

Analysts expected earnings of 35 cents per share in the latest quarter, according to FactSet.

Revenue in the quarter rose 46 percent to $190.9 million from $129.8 million a year ago.

Analysts expected revenue of $168.1 million.

FUTURE: For the full fiscal year ending in April, the company now expects earnings between $1.70 per share and $1.90 per share. That's up from its previous guidance between $1.40 per share and $1.60 per share.

It now expects revenue for the full fiscal year between $720 million and $750 million, up from its previous guidance between $670 million and $700 million.

Analysts expect earnings of $1.48 per share and revenue of $684.2 million.

STOCK: Up $10.62, or 43 percent, to close at $35.28 Thursday. It rose as high as $35.58, an all-time high.

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