Richardson Electrncs Down 6.31% To $10.47 After Earnings Beat

Thursday, October 12, 2023 - Richardson Electrncs (RELL) reported upside earnings and revenues today.

Analyst expectations for Richardson Electrncs earnings per share (EPS) were at $0.03, with the company surpassing those estimates with a reported EPS of $0.09, leading to a positive surprise of $0.06 per share (200%). Richardson Electrncs's earnings were down 80% year-over-year as the firm reported an EPS of $0.45 in its year-ago quarter. The negative annual growth shows the Technology company isn't performing well amid current economic conditions.

Consensus estimates for Richardson Electrncs revenue averaged out to $51.1 million, with the business managing to beat those expectations with reported first-quarter revenue of $52.6 million. The $1.5 million (3%) positive revenue surprise led to negative 22% growth year-over-year as the firm reported revenue of $67.6 million in its year-ago quarter. The lower earnings growth compared to revenue points to Richardson Electrncs not being able to improve its profit margin.

The stock is down 6.31% to $10.47 after the report.

The firm's higher revenue growth to earnings signals that the firm has not been able to reduce costs and has seen its profit margin decrease.

Trading in the five days leading up to the report earned Richardson Electrncs a Bullish Sentiment Rank from InvestorsObserver.

Richardson Electrncs has performed poorly during the past few months, garnering a low Long-Term Technical Rank by InvestorsObserver of 21, putting Richardson Electrncs in the bottom 25% of stocks. The firm was recently trading at a 52-week low of $10.48 on October 5, 2023 and set a 52-week high on November 28, 2022 at $27.24.

Richardson Electronics Ltd provides engineered solutions, power grid, and microwave tubes and related consumables, power conversion and RF and microwave components, high-value flat panel detector solutions, replacement parts, tubes, and service training for diagnostic imaging equipment and customized display solutions. Its products have applications in alternative energy, healthcare, aviation, broadcast, communications, industrial, marine, medical, military, scientific, and semiconductor markets. It has PMT(Power and Microwave Technologies Group), Canvys, and Healthcare reportable segments. The company derives the majority of its revenues from the PMT segment. Its geographical segments include North America, Asia Pacific, Europe, and Latin America.