In Q4, the company experienced a significant impact to its earnings performance due to acquisition costs, higher than expected professional fees, various discrete tax expense items, a mix of lower margin sales, currency hedging inefficiencies, and other higher costs.

CEO Donald W. Duda said, "We expect lower sales and earnings in fiscal 2024 due to program roll-offs as well as market headwinds in commercial vehicles, data centers, and e-bikes. However, given the strength of our award activity over the past three years, we expect significant organic sales and earnings growth in fiscal 2025 over fiscal 2024."

FY24 Outlook: Methode sees FY24 sales of $1.15 billion - $1.20 billion (consensus $1.21 billion) and EPS of $1.55 - $1.75.

The lower earnings are largely due to additional costs to support new program launches, the impact from program roll-offs, and market headwinds in the higher margin Industrial segment. 

FY25 Outlook: The company expects net sales to be $1.25 billion - $1.35 billion, which is below its previously announced three-year organic sales compounded annual growth rate target of 6% primarily due to the unexpected early sunsetting of an EV program in fiscal 2024 due to a change in technology by the customer.

Price Action: MEI shares traded lower by 16.12% at $37.81 on the last check Tuesday.