Electronics distributor Richardson Electronics (NASDAQ:RELL) will be reporting earnings this Wednesday after market hours. Here’s what investors should know.
Richardson Electronics missed analysts’ revenue expectations by 3.7% last quarter, reporting revenues of $51.89 million, up 9.5% year on year. It was a strong quarter for the company, with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
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This quarter, analysts are expecting Richardson Electronics’s revenue to decline 4.1% year on year to $51.51 million, a reversal from the 2.2% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.01 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Richardson Electronics has missed Wall Street’s revenue estimates six times over the last two years.
With Richardson Electronics being the first among its peers to report earnings this season, we don’t have anywhere else to look to get a hint at how this quarter will unravel for industrial distributors stocks. However, there has been positive investor sentiment in the segment, with share prices up 3.5% on average over the last month. Richardson Electronics’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $11.50 (compared to the current share price of $9.62).
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