Q2 EPS Estimates for Richardson Electronics Lifted by Sidoti

Key Points

• Sidoti raised Richardson Electronics’ Q2 2027 EPS estimate to $0.14 from $0.09, while projecting full-year earnings of $0.50 per share and continued quarterly EPS growth through 2028.
• Recent results significantly exceeded expectations: quarterly EPS was $0.27 versus the $0.09 consensus, and revenue reached $64.92 million compared with forecasts of about $58.98 million.
• Analyst sentiment is generally positive, with the stock carrying a “Moderate Buy” consensus rating and a $24 price target; however, elevated valuation and reliance on a one-time tariff refund for part of the margin improvement remain risks.

Richardson Electronics, Ltd. (NASDAQ:RELL - Free Report) - Research analysts at Sidoti raised their Q2 2027 earnings estimates for shares of Richardson Electronics in a research report issued on Friday, October 9th. Sidoti analyst A. Soderstrom now anticipates that the technology company will post earnings of $0.14 per share for the quarter, up from their previous forecast of $0.09. The consensus estimate for Richardson Electronics' current full-year earnings is $0.50 per share. Sidoti also issued estimates for Richardson Electronics' Q3 2027 earnings at $0.13 EPS, Q4 2027 earnings at $0.14 EPS, Q1 2028 earnings at $0.20 EPS, Q2 2028 earnings at $0.21 EPS, Q3 2028 earnings at $0.22 EPS and Q4 2028 earnings at $0.23 EPS.

Several other research analysts have also weighed in on the company. Northland Securities raised Richardson Electronics from a "market perform" rating to an "outperform" rating and upped their price target for the company from $14.00 to $24.00 in a research report on Tuesday, July 28th. Wall Street Zen upgraded Richardson Electronics from a "hold" rating to a "buy" rating in a research report on Saturday, August 8th. Weiss Ratings raised Richardson Electronics from a "hold (c)" rating to a "buy (b-)" rating in a research note on Thursday. Finally, Zacks Research cut Richardson Electronics from a "strong-buy" rating to a "hold" rating in a research note on Monday, September 28th. Two investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $24.00.

Richardson Electronics Stock Performance

Shares of RELL stock opened at $20.79 on Monday. Richardson Electronics has a 1-year low of $9.37 and a 1-year high of $23.15. The company has a market capitalization of $305.41 million, a price-to-earnings ratio of 35.85, a P/E/G ratio of 1.65 and a beta of 1.32. The stock's fifty day simple moving average is $18.23 and its 200-day simple moving average is $16.69.

Richardson Electronics (NASDAQ:RELL - Get Free Report) last issued its earnings results on Wednesday, October 7th. The technology company reported $0.27 EPS for the quarter, topping the consensus estimate of $0.09 by $0.18. The business had revenue of $64.92 million during the quarter, compared to analysts' expectations of $58.98 million. Richardson Electronics had a return on equity of 4.82% and a net margin of 3.57%.

Richardson Electronics Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, November 25th. Shareholders of record on Friday, November 6th will be paid a dividend of $0.06 per share. The ex-dividend date of this dividend is Friday, November 6th. This represents a $0.24 dividend on an annualized basis and a dividend yield of 1.2%. Richardson Electronics's dividend payout ratio (DPR) is 41.38%.

Insider Activity at Richardson Electronics

In other news, COO Wendy Diddell sold 23,901 shares of the company's stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $20.00, for a total value of $478,020.00. Following the transaction, the chief operating officer directly owned 114,150 shares of the company's stock, valued at approximately $2,283,000. This represents a 17.31% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CFO Robert J. Ben sold 9,000 shares of the company's stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $21.61, for a total transaction of $194,490.00. Following the completion of the transaction, the chief financial officer directly owned 60,534 shares in the company, valued at $1,308,139.74. This trade represents a 12.94% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 133,585 shares of company stock worth $2,565,216. 31.65% of the stock is currently owned by company insiders.

Institutional Trading of Richardson Electronics

A number of institutional investors have recently bought and sold shares of the company. BlackRock Inc. bought a new stake in shares of Richardson Electronics in the 2nd quarter valued at approximately $18,874,000. AIGH Capital Management LLC acquired a new position in Richardson Electronics in the second quarter worth approximately $3,810,000. Bank of New York Mellon Corp acquired a new position in Richardson Electronics in the second quarter worth approximately $1,995,000. Annis Gardner Whiting Capital Advisors LLC bought a new position in Richardson Electronics during the first quarter valued at approximately $1,095,000. Finally, First Wilshire Securities Management Inc. raised its position in Richardson Electronics by 13.9% during the first quarter. First Wilshire Securities Management Inc. now owns 671,998 shares of the technology company's stock valued at $7,358,000 after acquiring an additional 82,054 shares in the last quarter. Institutional investors and hedge funds own 71.95% of the company's stock.

More Richardson Electronics News

Here are the key news stories impacting Richardson Electronics this week:

• Positive Sentiment: Quarterly results exceeded expectations: Richardson Electronics reported earnings of $0.27 per share versus the $0.09 analyst consensus, while revenue reached $64.92 million compared with expectations of $58.99 million. Earnings also increased from $0.13 per share a year earlier. Richardson Electronics Tops Q1 Earnings and Revenue Estimates
• Positive Sentiment: Growth outlook remains favorable: Management expects double-digit growth in its Global Engineered Solutions business in fiscal 2027, with approximately 75% of its backlog scheduled to ship. Demand for engineered power solutions, energy storage, semiconductor-related products and other power and microwave technologies is supporting the outlook. Richardson Electronics Expects Double-Digit GES Growth
• Positive Sentiment: Profitability improved: Operating income reportedly rose sharply to $5.1 million, and the company maintained its quarterly dividend of $0.06 per share, supporting the stock’s income appeal. Richardson Electronics Quarterly Dividend
• Neutral Sentiment: Short-interest data is inconsistent: The latest report lists short interest at zero shares and a 0.0-day short-interest ratio, suggesting no measurable short-selling pressure, although the reported “significant increase” conflicts with the zero-share figure and may reflect a data issue.
• Negative Sentiment: Valuation and earnings quality remain concerns: Analysts noted that part of the margin improvement came from a one-time tariff refund. With the shares trading at elevated earnings multiples, investors may require evidence that margin gains and semiconductor-driven growth are sustainable. Richardson Electronics Breakout Quarter Does Not Make Stock a Bargain

Richardson Electronics Company Profile

Richardson Electronics, Ltd. NASDAQ: RELL is a global provider of engineered solutions, replacement parts and specialized components for industrial, healthcare and energy markets. Founded in 1947 and headquartered in LaFox, Illinois, the company serves original equipment manufacturers, distributors and end users through a network that spans North America, Europe and Asia.

The company operates through three primary business areas. Its Power and Microwave Technologies segment supplies power semiconductors, electronic components, vacuum tubes, radio-frequency and microwave products, and related engineering services for applications including telecommunications, industrial equipment, broadcasting and defense.

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