Methode Electronics Q4 Sales Beat at $233.7M, Cuts EBITDA Forecast to $60M
Methode Electronics reported Q4 net sales of $233.7M, down 2.6% year-over-year yet exceeding forecasts, and posted a $0.37 adjusted loss with $7.3M EBITDA, missing estimates. It raised full-year revenue guidance to a $975M midpoint but trimmed EBITDA outlook to $60M, under analyst targets and triggering a 14.9% plunge.
1. Q4 Results Overview
Methode Electronics recorded net sales of $233.7 million for the fourth quarter, a 2.6% year-over-year decline that still exceeded forecasts by 6.5%. However, the company reported an adjusted loss of $0.37 per share and EBITDA of $7.3 million, missing estimates by 85% and 48.9% respectively.
2. Revised Full-Year Guidance
Management raised full-year revenue guidance to a midpoint of $975 million, up from $950 million, driven by expected strength in industrial power solutions. At the same time, it lowered adjusted EBITDA guidance to a $60 million midpoint versus analysts’ $70 million outlook, signaling continued margin pressure.
3. Market Reaction and Volatility
Following the disappointing profitability metrics and lowered EBITDA outlook, shares plunged 14.9% in a single session. The sharp decline underscores the market’s sensitivity to earnings misses and profit forecasts, reflecting ongoing concerns about margin recovery and operational execution.