Analyst Summary:
Methode Electronics, a global supplier of custom-engineered solutions for user interface, LED lighting and power distribution applications, announced Q3 2023 financial results, including net sales of $280.1 million, a decrease of 3% YoY. Excluding foreign currency and cost recovery impacts, net sales were up 3.7% YoY. The increase was mainly due to higher sales in the Industrial segment driven by power distribution solutions for electric vehicles and data centers. The company also announced a public tender offer for all the outstanding shares of Nordic Lights Group Corporation at EUR 6.30 per share, for a total equity value of approximately EUR 132.0 million. "This is an exciting opportunity for us to grow our LED lighting solutions business and gain more industrial and non-auto transportation market exposure," said CEO Donald W. Duda. Management has reduced its sales and earnings guidance for the year due to demand weakness in Asia and foreign exchange remeasurement impact. However, the guidance does not include acquisition costs and is subject to a variety of factors including COVID-19 pandemic, among others.