The 10-second takeaway
For the quarter ended Dec. 3 (Q2), Richardson Electronics missed on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted, and earnings per share dropped significantly.
Gross margins grew, operating margins increased, and net margins shrank.
Richardson Electronics reported revenue of $39 million. The two analysts polled by S&P Capital IQ wanted to see revenue of $43 million. Sales were 4.5% lower than the prior-year quarter's $41 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.09. The two earnings estimates compiled by S&P Capital IQ averaged $0.09 per share on the same basis. GAAP EPS of $0.04 for Q2 were 89% lower than the prior-year quarter's $0.41 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 29.9%, 110 basis points better than the prior-year quarter. Operating margin was 4.4%, 290 basis points better than the prior-year quarter. Net margin was 2.1%, 1,610 basis points worse than the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods.
What does the future hold?
Next quarter's average estimate for revenue is $44 million. On the bottom line, the average EPS estimate is $0.11.
Next year's average estimate for revenue is $172 million. The average EPS estimate is $0.37.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 68 members out of 70 rating the stock outperform, and two members rating it underperform. Among 16 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 15 give Richardson Electronics a green thumbs-up, and one gives it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Richardson Electronics is buy, with an average price target of $18.00.
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