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LONDON, UK / ACCESSWIRE / July 12, 2018 / If you want access to our free earnings report on Methode Electronics, Inc. (NYSE: MEI) ("Methode"), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=MEI. The Company reported its fourth quarter fiscal 2018 and full fiscal year 2018 operating and financial results on June 21, 2018. The maker of electrical components for the auto and computer industries outpaced revenue and earnings expectations. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is currently working on the research report for Acuity Brands, Inc. (NYSE: AYI), which also belongs to the Technology sector as the Company Methode Electronics. Do not miss out and become a member today for free to access this upcoming report at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Methode Electronics most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Earnings Highlights and Summary

For the fourth quarter of the fiscal year 2018, Methode's net sales increased 13.3% to $249.0 million from $219.7 million in Q4 FY17. The Company's revenue numbers for the reported quarter topped analysts' estimates by $2.92 million.

During Q4 FY18, Methode's consolidated gross margin as a percentage of net sales decreased slightly to 24.9% compared 25.1% in Q4 FY17. The Company's gross margin declined primarily as a result of unfavorable sales mix related to newly-acquired businesses in the Automotive segment.

For Q4 FY18, Methode's selling and administrative expenses rose 12.5% to $32.4 million compared to $28.8 million in the prior year's same quarter, primarily due to expenses from new acquisitions, as well as higher wages and travel expenses. As a percentage of sales, the Company?s selling and administrative expenses decreased to 13.0% compared to 13.3% in Q4 FY17.

During Q4 FY18, Methode's income tax expenses decreased to a benefit of $6.0 million compared to an expense of $4.7 million in Q4 FY17, primarily due to an increase in foreign investment tax credits of $7.4 million related to tax law changes in foreign jurisdictions, and a $3.1 million benefit as the result of a change in the provisional estimates related to the Tax Cuts and Jobs Act 2017 (TCJA).

For Q4 FY18, Methode's net income increased to $36.8 million, or $0.98 per share, compared to $23.1 million, or $0.62 per share, in Q4 FY17. The Company's net income for the reported quarter benefitted from lower tax expenses of $10.7 million; higher sales in the Automotive (inclusive of new acquisitions) and Power Products segments; increased international government grants of $2.2 million; and lower legal fees of $0.5 million. Methode's earnings numbers beat Wall Street's estimates of $0.73 per share.

For the full fiscal year 2018, Methode's net sales increased 11.2% to $908.3 million from $816.5 million in FY17.

Methode's net income decreased to $57.2 million, or $1.52 per share, in FY18 from $92.9 million, or $2.48 per share, in FY17. For FY18, the impact from increased tax expenses was of $53.7 million, or $1.43 per share, due to the TCJA.

Segment Results

During Q4 FY18, Methode?s Automotive segment's sales increased 17.6% on a y-o-y basis, due to sales from Procoplast and Pacific Insight acquisitions; a favorable currency impact; a higher customer-funded tooling and design fees; and increased hidden switch sensor and user interface product volumes. The segment's gross margin declined 180 basis points (bps) to 25.6% in the reported quarter, due to a sales mix related to newly acquired businesses, unfavorable currency impact, and price reductions.

For Q4 FY18, Methode's Interface segment's sales fell 9.2% on a y-o-y basis, driven mainly by the exit of the Connectivity. The segment's gross margin increased 290 bps to 21.7% in the reported quarter due to improved radio remote control sales.

Methode's Power Products segment's sales advanced 12% on a y-o-y basis, driven by higher PowerRail sales and bus bar sales in North America and Asia. On a y-o-y basis, the segment?s gross margin increased 240 bps to 30.4% in the reported quarter, primarily due to higher sales, but partially offset by increased copper prices.

Outlook

For the full fiscal year 2019, Methode anticipates sales to be in the range of $950 million to $970 million; pre-tax income to be in the band of $127 million to $134 million; and earnings per share to be in the range of $2.81 to $2.96.

Stock Performance Snapshot

July 11, 2018 - At Wednesday's closing bell, Methode Electronics' stock was slightly down 0.86%, ending the trading session at $40.35.

Volume traded for the day: 242.47 thousand shares, which was above the 3-month average volume of 239.67 thousand shares.

Stock performance in the previous three-month period - up 3.73%; past twelve-month period - up 0.12%; and year-to-date - up 0.62%

After yesterday's close, Methode Electronics' market cap was at $1.45 billion.

Price to Earnings (P/E) ratio was at 13.62.

The stock has a dividend yield of 1.09%.

The stock is part of the Technology sector, categorized under the Diversified Electronics industry.

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