UPDATE: Methode Electronics Beats Q2 Expectations

Methode Electronics MEI reported better-than-expected earnings for the fiscal second quarter and raised its FY15 earnings forecast. The Chicago, Illinois-based company posted quarterly net income of $26 million, or $0.66 per share, versus $19.8 million, or $0.51 per share, in the year-ago period. Its revenue climbed 20.3% to $229.7 million in the period. However, analysts were projecting earnings of $0.55 per share on revenue of $220.5 million. Automotive segment's net sales gained 31.5% in the quarter, while Interface segment's net sales slipped 8.4%. The Power Products segment's net sales gained 15.5% in the quarter. Consolidated gross margins as a percentage of net sales widened to 26.2% from 21.7%. Income from operations surged 60.4% to $34.8 million from $21.7 million. President and Chief Executive Officer Donald W. Duda said, "Strong first-half sales in the Automotive and Power Products segments contributed to a significant improvement in gross margins, as well as income from operations growth of 71 percent. Our profitability was also positively impacted by factory efficiencies and vertical integration. Given these results, we have increased our overall profit outlook for the fiscal year." For the full year, Methode projects earnings of $2.20 to $2.30 per share, versus its earlier forecast of $2.10 to $2.20 per share. The company reaffirmed revenue of $870 million to $885 million. Methode shares rose 2.43% to $42.61 in pre-market trading.