CORRECTED-Methode Electronics Q2 sales fall, hurt by lower volumes

Overview

• Methode fiscal Q2 net sales down 15.6% yr/yr

• Company reaffirms fiscal 2026 guidance despite $100 mln decline in annual sales

Outlook

• Methode Electronics reaffirms fiscal 2026 net sales guidance of $900 mln to $1 bln

• Company expects fiscal 2026 adjusted EBITDA of $70 mln to $80 mln

• Methode Electronics anticipates positive free cash flow for fiscal 2026

Result Drivers

• OPERATIONAL ENHANCEMENTS - Co attributes performance to strategic operational enhancements despite lower sales volumes

• FOREIGN CURRENCY IMPACT - Foreign currency translation increased net sales by $3.3 mln in Automotive segment

• AUTOMOTIVE SEGMENT DECLINE - Lower sales volumes in Automotive segment due to roll-off of legacy programs

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the electronic equipment & parts peer group is "buy"

• Wall Street's median 12-month price target for Methode Electronics Inc is $10.25, about 23.5% above its December 2 closing price of $8.30

Press Release: ID:nGNXKGXTN

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