UPDATE: Methode Electronics Q3 Profit Beats Expectations
Methode Electronics Inc. (NYSE: MEI) reported better-than-expected earnings for the fiscal third quarter.
The Chicago, Illinois-based company posted quarterly net income of $27.1 million, or $0.68 per share, compared to $14.6 million, or $0.38 per share, in the year-ago period
Its revenue climbed 8.5% to $206 million. However, analysts were expecting earnings of $0.49 per share on revenue of $209.71 million.
Automotive segment's net sales rose 9.6% for the quarter, while Interface segment's sales slipped 11.1%. Sales for the Power Products segment climbed 45.0% in the quarter.
Gross margins as a percentage of net sales widened to 27.3% from 20.3%.
Selling and administrative expenses dropped 2.7% to $21.5 million in the quarter. Income from operations climbed 111.6% to $34.7 million from $16.4 million.
President and Chief Executive Officer Donald W. Duda said, "Third-quarter sales in our Automotive and Interface segments were in line with our expectations. However, our Power Products segment saw stronger than anticipated sales, which, coupled with favorable raw material pricing and lower than expected consolidated SG&A, drove consolidated income from operations growth of 112 percent over last year. Given these results, we have increased our overall profit outlook for this fiscal year."
For the full year, Methode projects earnings of $2.50 to $2.60 per share, on revenue of $870 million to $885 million.
Methode shares rose 2.29% to close at $40.23 yesterday.
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