Methode Electronics Inc. (MEI) reported that its fourth-quarter net income to company increased to $10.16 million or $0.27 per share, from $5.77 million or $0.15 per share last year. Excluding the impact of the Malta valuation allowance, the goodwill impairment charge and the compensation expense, net income was $8.9 million, or $0.24 per share.
On average, three analysts polled by Thomson Reuters expected the company to report profit per share of $0.15 for the quarter. Analysts' estimates typically exclude special items.
Net sales rose to $148.36 million from $126.40 million last year. Analysts expected revenue of $128.90 million for the quarter.
Consolidated gross margins as a percentage of sales were 18.7 percent compared to 18.2 percent in the same period of prior year. The company said the increase was due primarily to higher sales, lower costs related to third-party inspection, premium freight and over-time expenses, as well as higher sales and lower material costs in the Other segment, partially offset by increased design, development and engineering costs for a new automotive program, increased sales of automotive product that has a higher prime cost due to the current high percentage of purchased content, severance and building demolition costs in the Automotive segment and costs related to the newly acquired Hetronic business in Italy in the Interconnect segment.
For fiscal 2014, Methode anticipates sales in the range of $630 million to $660 million and earnings per share in the range of $0.91 to $1.11. Analysts expect the company to report fiscal 2014 profit per share of $1.04 on revenue of $640.36 million.
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