Electronics distributor Richardson Electronics (NASDAQ:RELL) will be announcing earnings results this Wednesday after market close. Here’s what to look for.
Richardson Electronics missed analysts’ revenue expectations by 1.7% last quarter, reporting revenues of $53.8 million, up 2.7% year on year. It was a strong quarter for the company, with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.
Is Richardson Electronics a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Richardson Electronics’s revenue to grow 13.7% year on year to $53.86 million, a reversal from the 19.5% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.05 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings.
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 delivered year-on-year revenue growth of 8.6%, beating analysts’ expectations by 0.5%, and MSC Industrial reported flat revenue, in line with consensus estimates. Fastenal traded up 4.2% following the results while MSC Industrial was also up 5.4%.
Read our full analysis of Fastenal’s results here and MSC Industrial’s results here.
There has been positive sentiment among investors in the industrial distributors segment, with share prices up 5.9% on average over the last month. Richardson Electronics is up 4.6% during the same time and is heading into earnings with an average analyst price target of $9.50 (compared to the current share price of $9.73).
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