Methode Electronics, Inc. Revises Earnings Guidance for the Full Fiscal Year 2024 and 2025
December 07, 2023 at 07:00 am EST
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Methode Electronics, Inc. revised earnings guidance for the full fiscal year 2024 and 2025. For fiscal 2024 full year, the company continues to expects net sales to be in a range of $1,140 million to $1,180 million. The company has revised diluted earnings per share to be in a range of -$1.40 to -$1.14, down from the previous range of $0.80 to $1.00. The lower range is mainly due to the goodwill impairment, operational inefficiencies, product mix, the lower second quarter results, and other higher costs.
For the year 2025, company now expects net sales to be in a range of $1,150 to $1,250 million, as compared to the previous range of $1,250 to $1,350 million. The lower range is mainly due to expected customer delays with EV programs and program roll offs. The company has also revised income from operations as a percentage of net sales to be in a range of 6% to 8%, as compared to the previous range of 11% to 12%. The lower rate is mainly due to the lower expected net sales.
Methode Electronics, Inc. is a supplier of custom engineered solutions with sales, engineering and manufacturing locations in North America, Europe, Middle East, and Asia. The Company operates through four segments: Automotive, Industrial, Interface and Medical. The Automotive segment supplies electronic and electro-mechanical devices and related products to automobile original equipment manufacturers (OEMs). The Industrial segment manufactures external lighting solutions, industrial safety radio remote controls, braided flexible cables, current-carrying laminated busbars and devices, custom power-product assemblies, such as its PowerRail solution, high-current low-voltage flexible power cabling systems and powder-coated busbars. The Interface segment provides a variety of copper-based transceivers and user interface solutions. The Medical segment is made up of its medical device business, Dabir Surfaces, with its surface support technology aimed at pressure injury prevention.