Methode Electronics (MEI) has gained 33% to 23.43 today after the company reported better revenue and profit numbers than even the most positive analyst had expected. It also raised its guidance well above previously announced levels.
AFP/Getty Images The component maker reported a profit of 36 cents a share, above forecasts for 21 cents, and sales of $167.3 million dollars, beating forecasts for $148.5 million. It also said that it expected full-year earnings to fall in a range of $1.40 to $1.60, well above analyst forecasts for $1.05.
Baird’s David Leiker and Joseph Vruwink call it a “breakout quarter.” They write:
Upside across all segments and all line items with 41% revenue surge coming in 10% above expectations. One-half of the beat from revenue with balance split among gross margin, SGA and lower tax rate. Launches going very well, continuing the performance seen in April quarter.
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Automotive results accounted for two-thirds of the upside at the pre-tax line. The upside was spread between stronger revenues ($0.03), gross profits ($0.03) and expense control ($0.02). While North American sales improved 86% on the K2XX launch (we assumed 56% growth), international revenues also contributed favorably with 26% growth in Europe (new business and Ford's (F) recovery) and 22% growth in Asia.
Competitor AVX Corp. (AVX) has gained 1.1% to $12.96, while Molex (MOLX) has dropped 0.2% to $29.28 and Amphenol (APH) has ticked up 0.3% to $76.32.
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