Electronics distributor Richardson Electronics (NASDAQ: RELL) will be announcing earnings results this Wednesday after market close. Here’s what to expect.
Richardson Electronics beat analysts’ revenue expectations last quarter, reporting revenues of $52.29 million, up 5.7% year on year. It was an exceptional quarter for the company, with EPS in line with analysts’ estimates and an impressive beat of analysts’ revenue estimates.
Is Richardson Electronics a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Richardson Electronics’s revenue to decline 1.3% year on year, a reversal from the 2.7% increase it recorded in the same quarter last year.
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 multiple times over the last two years.
Looking at Richardson Electronics’s peers in the industrial distributors segment, only MSC Industrial has reported results so far. It missed analysts’ revenue estimates, delivering year-on-year sales growth of 2.9%. The stock was down 2.1% on the results.
Read our full analysis of MSC Industrial’s earnings results here.Investors in the industrial distributors segment have had fairly steady hands going into earnings, with share prices down 1.8% 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 $12 (compared to the current share price of $11.43).
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