Have a look at News Release: Methode Electronics, Inc. (NYSE: MEI)

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On 20 April 2020, Methode Electronics, Inc. (NYSE: MEI) changed -2.26% to recent value of $27.30. The stock transacted 166,854 shares during most recent day however it has an average volume of 236.86K shares. It spotted trading -34.53% off 52-week high price. On the other end, the stock has been noted 25.46% away from the low price over the last 52-weeks.

Methode Electronics, Inc. (MEI) reported financial results for the third quarter of Fiscal 2020 ended February 1, 2020.

Financial Results for the Third Quarter of Fiscal 2020
Net sales in the third quarter of Fiscal 2020 increased $39.0M, or 15.8 percent, to $285.9M from $246.9M in the same quarter of Fiscal 2019. The increase in net sales was largely Because of higher sales in the Automotive section.

GAAP net income increased $10.5M to $41.2M, or $1.09 per share, in the third quarter of Fiscal 2020 from $30.7M, or $0.82 per share, in the same period of Fiscal 2019. GAAP net income in the third quarter of Fiscal 2020 was higher mainly Because of increased gross profit in the Automotive section.

Adjusted net income, a non-GAAP financial measure, was $39.4M, or $1.05 per share, in the third quarter of Fiscal 2020 contrast to $31.3M, or $0.83 per share, in the same period of Fiscal 2019. Adjusted net income excludes expenses for initiatives to reduce overall costs and improve operational profitability and purchase accounting adjustments in the applicable periods.

Consolidated gross profit margins increased to 27.7 percent in the third quarter of Fiscal 2020 contrast to 26.0 percent in the same period last year. The improvement was Because of the benefits realized from the initiatives to reduce overall costs and improve operational profitability taken in Fiscal 2019 and purchase accounting adjustments recorded in the third quarter of Fiscal 2019.

Adjusted gross profit margins, a non-GAAP financial measure, were 27.8 percent in the third quarter of Fiscal 2020 contrast to 27.7 percent in the same period last year and exclude expenses for initiatives to reduce overall costs and improve operational profitability and purchase accounting adjustments in the applicable periods.

Selling and administrative expenses as a percentage of sales reduced to 11.5 percent in the third quarter of Fiscal 2020 contrast to 13.3 percent in the same period last year. The decrease is attributable to lower employment levels as a result of the initiatives to reduce overall costs and improve operational profitability taken in Fiscal 2019, partially offset by higher performance-based compensation.

Adjusted selling and administrative expenses as a percentage of sales, a non-GAAP financial measure, were 11.3 percent in the third quarter of Fiscal 2020 contrast to 12.5 percent in the same period last year and exclude expenses for initiatives to reduce overall costs and improve operational profitability and acquisition-related costs in the applicable periods.

Year over year, intangible asset amortization expense in the third quarter of Fiscal 2020 reduced $0.7M, or 12.7 percent, to $4.8M, Because of lower amortization expense in the Interface section.

In the Fiscal 2020 third quarter, income tax expense increased $5.8M to $2.8M contrast to an income tax benefit of $3.0M in the Fiscal 2019 third quarter. The Company’s effective tax rate was 6.4 percent in the Fiscal 2020 period contrast to a benefit of (10.4) percent in the previous third quarter. The increase primarily related to higher pre-tax income in the Fiscal 2020 third quarter, partially offset by favorable adjustments Because of U.S. Tax Reform from IRS regulations issued in December 2019, resulting in a lower quarterly effective tax rate. The previous year comparable period included a tax benefit related to the finalization of the transition tax from U.S. Tax Reform.

EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization of Intangibles), a non-GAAP financial measure, was $58.7M in the third quarter of Fiscal 2020 contrast to $43.1M in the Fiscal 2019 period.

Adjusted EBITDA, a non-GAAP financial measure, which excludes expenses for initiatives to reduce overall costs and improve operational profitability and acquisition-related costs (including purchase accounting adjustments) from EBITDA, was $59.8M in the third quarter of Fiscal 2020 contrast to $49.5M in the Fiscal 2019 period.

MEI has a gross margin of 27.30% and an operating margin of 13.30% while its profit margin remained 10.70% for the last 12 months. Its earnings per share (EPS) expected to touch remained -22.50% for this year while earning per share for the next 5-years is expected to reach at 15.00%.

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