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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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 of Motley 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.