Richardson Electronics Earnings: Here’s Why Shares are Up Now
Richardson Electronics Ltd. (NASDAQ:RELL) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 0.09%.
Richardson Electronics Ltd. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 55.56% to $0.04 in the quarter versus EPS of $0.09 in the year-earlier quarter.
Revenue: Decreased 12.34% to $33.6 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Richardson Electronics Ltd. reported adjusted EPS income of $0.04 per share. By that measure, the company missed the mean analyst estimate of $0.06. It missed the average revenue estimate of $39 million.
Quoting Management: “We continue to experience volatility in sales demand in the markets we serve, particularly in Europe and China. While we are disappointed with sales, we remain cautiously optimistic that the economy is stabilizing on a global basis, and we should see a return to normal purchasing patterns in the coming months. The month of February was the strongest month in North America that our EDG business has had in two years. In the meantime, we are closely managing our working capital investments and expenses. We generated nearly $5 million of cash from operating activities during the first nine months of this fiscal year,” said Edward J. Richardson, Chairman, Chief Executive Officer and President.
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