Investors Boo Methode Electronics Q1 Earnings, FY22 Outlook - Methode Electronics (NYSE:MEI)

Custom-engineered solutions provider Methode Electronics Inc MEI reported the first-quarter FY22 net sales growth of 50.8% year-on-year to $287.8 million, beating the analyst consensus of $281.5 million.
The ease in the pandemic and higher sales of electric and hybrid vehicle products drove the numbers.
Segments and margins: The Automotive segment's net sales rose 56.5% Y/Y to $195.8 million. The operating margin expanded 170 bps to 13.9%.
The Industrial segment net sales grew 51% Y/Y to $78.5 million. The operating margin expanded by 1,220 bps to 25.7%.
The Interface segment net sales declined 5.2% Y/Y to $12.7 million. The operating margin remained flattish at 8.7%.
The aggregate operating margin expanded 460 bps to 11.8%, aided by higher sales volume and lower costs.
EPS of $0.76 beat the consensus of $0.74.
Methode Electronic held $207.9 million in cash and equivalents and generated $9.7 million in operating cash flow.
Outlook: Methode Electronic reaffirmed the FY22 outlook between $1.175 billion - $1.235 billion against the consensus of $1.21 billion.
The EPS outlook lies between $3.35 - $3.75 versus the consensus of $3.57.
Price Action: MEI shares are trading lower by 8.10% at $42.67 on the last check Thursday.