RELL - Why Richardson Electronics Stock Jumped Earlier Today
Shares of Richardson Electronics (NASDAQ: RELL) were up 22% as of 12:11 p.m. ET on Thursday after reporting better-than-expected earnings results. For the fiscal first quarter ending Aug. 27, net sales were up 26% year over year. The company also saw an uptick in gross margin, which more than doubled earnings per share over the year-ago quarter.
Despite the business reporting its best sales in over 10 years in the previous quarter, the stock has fallen 22% this year on worries over inflation and a slowing economy. But management's outlook for the year ahead might be shifting market sentiment.
It was the company's ninth consecutive quarter of growth. Moreover, margins are steadily improving due to consistent production and avoiding supply issues that have plagued other companies this year.
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Why Richardson Electronics Stock Jumped Earlier Today