Richardson Electronics Misses on Both Revenue and Earnings
Richardson Electronics (NAS: RELL) reported earnings on April 12. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 3 (Q3), Richardson Electronics missed estimates on both revenue and earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share contracted significantly.
Gross margin improved, operating margin grew, and net margin dropped.
Richardson Electronics reported revenue of $38.3 million. The two analysts polled by S&P Capital IQ anticipated revenue of $41.1 million on the same basis. GAAP reported sales were 3.3% lower than the prior-year quarter's $39.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.09. The two earnings estimates compiled by S&P Capital IQ predicted $0.10 per share on the same basis. GAAP EPS of $0.08 for Q3 were 82% lower than the prior-year quarter's $0.45 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 29.5%, 40 basis points better than the prior-year quarter. Operating margin was 4.8%, 270 basis points better than the prior-year quarter. Net margin was 3.5%, 1,720 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $45.4 million. On the bottom line, the average EPS estimate is $0.13.
Next year's average estimate for revenue is $167.1 million. The average EPS estimate is $0.39.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 66 members rating the stock outperform and two members rating it underperform. Among 14 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 13 give Richardson Electronics a green thumbs-up, and one give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Richardson Electronics is outperform, with an average price target of $18.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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