Methode Electronics Q4 sales beat estimates

Overview

• Methode Electronics fiscal Q4 sales beat analyst expectations, per LSEG data

• Adjusted EPS and EBITDA missed analyst expectations, per LSEG data

• Co reported strong free cash flow, reduced total and net debt

Outlook

• Company expects fiscal 2026 net sales between $900 mln and $1,000 mln

• Methode Electronics anticipates fiscal 2026 EBITDA of $70 to $80 mln

• Company sees lower EV demand impacting sales by $100 mln

• Methode Electronics plans to leverage data center growth opportunities

Result Drivers

• DATA CENTER SALES - Record sales in power distribution products for data centers, contributing positively to Industrial segment

• EV DEMAND DECLINE - Significant reduction in demand from major EV customers, leading to inventory write-downs

• CASH FLOW IMPROVEMENT - Strong free cash flow achieved through working capital reduction, aiding in debt reduction

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 $10.50, about 1% above its July 8 closing price of $10.39

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release: ID:nGNX4qXdWW