Methode Electronics (MEI) Tops Q2 EPS by 1c, Revenues Miss; Offers FY20 EPS Guidance Above Consensus, Lowers FY20 Revenue Guidance

Methode Electronics (NYSE: MEI) reported Q2 EPS of $0.64, $0.01 better than the analyst estimate of $0.63. Revenue for the quarter came in at $257.2 million versus the consensus estimate of $281.89 million.

GUIDANCE:

Methode Electronics sees FY2020 EPS of $3.25-$3.55, versus the consensus of $3.16. Methode Electronics sees FY2020 revenue of $1.1-1.13 billion, versus the consensus of $1.13 billion.

For Fiscal 2020, Methode reaffirms pre-tax income in the range of $150.3 million to $164.3 million and earnings per share in the range of $3.25 to $3.55. As a result of the UAW labor strike at GM, Methode updates sales guidance to a range of $1.10 billion to $1.13 billion from $1.13 billion to $1.17 billion.

Fiscal 2020 guidance considers:

• the timing of the launch of a significant amount of previously announced new Automotive business and a laundry program in the Interface segment at anticipated volumes;
• the mitigation of some of the adverse impact from the UAW labor strike at GM;
• the anticipated impact of tariffs on imported Chinese goods at 25 percent and the net costs associated with mitigating those tariffs; and
• twelve months of Grakon results, as compared to seven and a half months of Grakon results in Fiscal 2019.

For earnings history and earnings-related data on Methode Electronics (MEI) click here.

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