METHODE ELECTRONICS Reports FY2024 Q1 Earnings Results for July 31 2023
September 8, 2023
🌥️Earnings Overview
On September 7, 2023, METHODE ELECTRONICS ($NYSE:MEI) announced its financial results for the first quarter ending July 31, 2023 of fiscal year 2024. Total revenue for the quarter amounted to USD 289.7 million, representing an increase of 2.6% compared to the same period in the previous year. Unfortunately, net income decreased significantly by 95.8%, equating to USD 0.9 million.
Market Price
METHODE ELECTRONICS released their fiscal year 2024 quarterly results on Thursday, reporting a 22.2% drop in their stock price. The stock opened at $27.1 and closed on the day at $23.3, representing a plunge from the prior closing price of 30.0. This marked a significant decrease for the Chicago-based electronic component manufacturer, who had experienced a steady growth in its stock price throughout the year prior. This stemmed from weaker than expected sales in the automotive and industrial segments, indicative of the current economic climate.
In light of these results, the company’s CEO, Donald W. Duda, stated that they are “working diligently to drive efficient operations and capitalize on opportunities across our diversified portfolio of products and customers.” He expressed confidence that their strategies will yield better returns in the coming quarters and that Methode Electronics will emerge from this challenging period in a stronger position. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Methode Electronics. More…
| Total Revenues | Net Income | Net Margin |
| 1.19k | 56.5 | 4.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Methode Electronics. More…
| Operations | Investing | Financing |
| 114.5 | -157.3 | 36.5 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Methode Electronics. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.57k | 641.8 | 25.86 |
Key Ratios Snapshot
Some of the financial key ratios for Methode Electronics are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 7.9% | -16.0% | 6.0% |
| FCF Margin | ROE | ROA |
| 5.8% | 4.7% | 2.8% |
Analysis
At GoodWhale, we strive to provide investors with comprehensive analysis of a company’s financials. Our analysis of METHODE ELECTRONICS revealed that this company has a high health score of 9/10 according to our Star Chart, indicating that the company is capable of safely riding out any crisis without the risk of bankruptcy. Furthermore, METHODE ELECTRONICS is classified as ‘cow’, a type of company that has a track record of paying out consistent and sustainable dividends. This suggests that investors with an income-based investment strategy may find METHODE ELECTRONICS to be an attractive option. Additionally, we consider METHODE ELECTRONICS to be strong in dividends, medium in asset, profitability and weak in growth. This suggests that the company may not be ideal for growth-oriented investors. More…
Peers
Its competitors include Bel Fuse Inc, Data Modul AG, and Chant Sincere Co Ltd.
– Bel Fuse Inc ($NASDAQ:BELFB)
Bel Fuse Inc. designs, manufactures and markets products that power, protect and connect electronic equipment. Its product categories include Magnetic Solutions, Power Solutions and Protection, and Connectivity Solutions. The company’s primary end markets include data communication, telecommunication, computer, industrial, lighting, automotive, consumer and military/aerospace.
– Data Modul AG ($BER:DAM)
Modul AG is a leading provider of integrated software solutions for the construction industry. The company has a market capitalization of 195.7 million as of 2022 and a return on equity of 8.63%. Modul AG’s software solutions are used by construction companies of all sizes to manage their projects, resources, and finances. The company’s products are used by over 20,000 construction companies worldwide.
– Chant Sincere Co Ltd ($TWSE:6205)
Chant Sincere Co Ltd is a publicly traded company with a market cap of 6.28B as of 2022. The company has a ROE of 9.69%. Chant Sincere Co Ltd is a leading provider of integrated logistics solutions in China. The company provides comprehensive logistics services, including transportation, warehousing, distribution, and value-added services.
Summary
METHODE ELECTRONICS reported its earnings results for the first quarter of FY2024 on September 7th, 2023. Total revenue was up 2.6% year-over-year, however net income decreased 95.8%. This had an immediate impact on the stock price, causing it to move downward.
Investors should consider the fact that although total revenue was up, net income was significantly down, indicating there may be cause for concern. Moving forward, investors should closely monitor the company’s performance and profitability to determine whether or not investing in METHODE ELECTRONICS is the right decision.
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