RELL - Why Richardson Electronics Stock Is Plummeting Today
2023-07-20 14:44:56 ET
Shares of Richardson Electronics (NASDAQ: RELL) are sinking Thursday following the company's recent fourth-quarter report. The engineering services company's stock was down 12.3% as of 2 p.m. ET, according to data from S&P Global Market Intelligence .
Richardson Electronics published earnings results after the market closed yesterday, delivering sales and earnings performance for the period that fell short of the market's expectations. The company posted non-GAAP (adjusted) earnings per share of $0.11 on revenue of $58.83 million, while the average analyst estimate had guided for per-share earnings of $0.19 on revenue of $61.5 million.
Sales fell 4.5% year over year in the company's fourth quarter, which ended May 27. While sales for the company's green energy solutions segment expanded 61.7% compared to the prior-year period, declines for its power and microwave technologies and Canvys display technologies business led to an overall decline in revenue. The company's gross margin also dipped to 27.9%, down from 32.7% in last year's fourth quarter due to a less favorable product mix.
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Why Richardson Electronics Stock Is Plummeting Today