Methode Electronics Q1 Results Top Estimates, Lifts FY View - Update

(RTTNews) - Components and subsystem devices maker Methode Electronics, Inc. (MEI) Thursday reported higher profit for the first quarter, as sales climbed 30 percent benefited by increased sales volumes in Automotive segment. Earnings per share as well as revenues topped analysts' expectations.

The company also lifted its outlook for fiscal 2015. The shares rose about 10 percent in pre-market trading.

For the first quarter ended August 2, net income attributable to the company increased to $21.4 million or $0.55 per share from $13.6 million or $0.36 per share a year earlier.

On average, four analysts polled by Thomson-Reuters were looking for earnings of $0.40 per share. Analysts' estimates typically exclude one-time items.

Income tax expense for the period was $7 million, compared to $1.3 million a year ago.

Net sales for the quarter climbed 30.4 percent to $218.1 million from $167.3 million in the same quarter last year, and came above analysts' estimate of $193.69 million.

In the Automotive segment, net sales surged 50.6 percent, and gross margins improved to 22.3 percent from 17.9 percent from the previous year.

Interface segment's net sales decreased 0.7 percent, and net sales from Power Products fell 6.4 percent from a year earlier.

Consolidated gross margins improved to 23.2 percent from 20.3 percent in the preceding year.

For fiscal 2015, the company now expects earnings per share to be in the range of $2.10 to $2.20, up from the prior guidance of $1.85 to $2.00 per share.

Sales are expected to be between $870 million and $885 million, compared to the earlier forecast of $835 million to $860 million.

Analysts expect earnings of $1.97 per share, on revenues of $851.35 million for the fiscal year.

MEI closed Wednesday's regular trading at $34.26 on the NYSE. In the pre-market activity on Thursday, the shares are up 9.88 percent.