Why Richardson Electronics Stock Is Plummeting Today
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.
Source Fool.com
