Stock Story -
Electronics distributor Richardson Electronics (NASDAQ:RELL) will be reporting earnings tomorrow after the bell. Here's what to look for.
Richardson Electronics missed analysts' revenue expectations by 6.5% last quarter, reporting revenues of $52.38 million, down 25.6% year on year. It was a mixed quarter for the company, with an impressive beat of analysts' earnings estimates.
Is Richardson Electronics a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting Richardson Electronics's revenue to decline 18.4% year on year to $48.01 million, a further deceleration from the 4.5% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.05 per share.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 2 downward revisions over the last 30 days. Richardson Electronics has missed Wall Street's revenue estimates three times over the last two years.
Looking at Richardson Electronics's peers in the industrial distributors segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Fastenal (NASDAQ:FAST) delivered year-on-year revenue growth of 1.8%, meeting analysts' expectations, and MSC Industrial reported a revenue decline of 7.1%, in line with consensus estimates. Fastenal traded up 5.8% following the results while MSC Industrial's stock price was unchanged.
Read the full analysis of Fastenal's and MSC Industrial's results on StockStory.
There has been positive sentiment among investors in the industrial distributors segment, with share prices up 6.5% on average over the last month. Richardson Electronics is up 2.9% during the same time and is heading into earnings with an average analyst price target of $13 (compared to the current share price of $11.89).
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