Methode Electronics Cuts FY Outlook

(RTTNews) - Methode Electronics, Inc. (MEI) Thursday revised its fiscal 2016 guidance to sales in the range of $805 million to $825 million and earnings per share in the range of $2.06 to $2.18.

In September, the company expected full-year earnings of $2.07 and $2.22, and sales in the range of $830 million to $865 million.

Analysts look for earnings of $2.18 per share on revenues of $837.59 million.

The company expects earnings in the third quarter to be lower than in the fourth quarter due to the effect of the holidays and continued weakness in its non-automotive businesses. Additionally, it expects fourth-quarter earnings will be in line with the second quarter.

The company said its second-quarter net income dropped to $21.2 million from $26.0 million in the prior year. Earnings per share dropped to $0.54 from $0.66. On average, four analysts polled by Thomson Reuters expected earnings of $0.53 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales fell to $208.4 million from $229.7 million in the prior year. Analysts expected revenues of $213.11 million.

According to the company, the results were affected by lower sales in the Automotive, Interface, Power Products and Other segments as well as increased expenses for legal and other professional fees, among others.