Northland Securities Estimates RELL FY2026 Earnings

Key Points

• Northland Securities cut its FY2026 EPS estimate for Richardson Electronics to $0.26 from $0.29 (consensus $0.27) and provided Q1 2027 and Q3 2027 EPS forecasts of $0.11 and $0.13, respectively.
• Q3 results beat expectations — EPS $0.07 vs. $0.05 and revenue $55.47M vs. $53.13M — with management citing cost control, PMT segment strength and a stronger backlog, though profitability remains thin (net margin ~1.75%, ROE ~2.8%) and valuation is elevated (PE ~49.5).
• The board declared a $0.06 quarterly dividend (1.8% yield) payable May 27, while insiders sold 36,000 shares in the last 90 days and institutional investors own roughly 71.95% of the stock.

Richardson Electronics, Ltd. (NASDAQ:RELL - Free Report) - Investment analysts at Northland Securities dropped their FY2026 EPS estimates for shares of Richardson Electronics in a report released on Friday, April 10th. Northland Securities analyst B. Brooks now forecasts that the technology company will post earnings per share of $0.26 for the year, down from their previous estimate of $0.29. The consensus estimate for Richardson Electronics' current full-year earnings is $0.27 per share. Northland Securities also issued estimates for Richardson Electronics' Q1 2027 earnings at $0.11 EPS and Q3 2027 earnings at $0.13 EPS.

Separately, Weiss Ratings reiterated a "sell (d+)" rating on shares of Richardson Electronics in a research report on Wednesday. One equities research analyst has rated the stock with a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of "Reduce" and an average price target of $14.00.

Richardson Electronics Stock Performance

RELL opened at $13.35 on Monday. The stock has a market capitalization of $193.82 million, a PE ratio of 49.45, a PEG ratio of 2.22 and a beta of 1.13. Richardson Electronics has a 1-year low of $7.65 and a 1-year high of $15.34. The firm has a 50-day moving average price of $12.01 and a two-hundred day moving average price of $11.17.

Richardson Electronics (NASDAQ:RELL - Get Free Report) last posted its quarterly earnings data on Wednesday, April 8th. The technology company reported $0.07 earnings per share for the quarter, beating the consensus estimate of $0.05 by $0.02. The firm had revenue of $55.47 million during the quarter, compared to analysts' expectations of $53.13 million. Richardson Electronics had a net margin of 1.75% and a return on equity of 2.83%.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the stock. AMH Equity Ltd bought a new position in Richardson Electronics in the third quarter valued at approximately $783,000. Engineers Gate Manager LP bought a new position in Richardson Electronics in the second quarter valued at approximately $103,000. Los Angeles Capital Management LLC bought a new position in Richardson Electronics in the fourth quarter valued at approximately $91,000. Raymond James Financial Inc. bought a new position in Richardson Electronics in the second quarter valued at approximately $57,000. Finally, Tower Research Capital LLC TRC lifted its stake in Richardson Electronics by 298.8% in the second quarter. Tower Research Capital LLC TRC now owns 4,160 shares of the technology company's stock valued at $40,000 after buying an additional 3,117 shares in the last quarter. Institutional investors own 71.95% of the company's stock.

Insider Buying and Selling

In related news, CFO Robert J. Ben sold 5,000 shares of Richardson Electronics stock in a transaction that occurred on Wednesday, February 4th. The shares were sold at an average price of $11.90, for a total transaction of $59,500.00. Following the transaction, the chief financial officer owned 57,034 shares of the company's stock, valued at $678,704.60. This trade represents a 8.06% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Jens Frank Ruppert sold 17,000 shares of Richardson Electronics stock in a transaction that occurred on Tuesday, January 27th. The stock was sold at an average price of $12.09, for a total transaction of $205,530.00. Following the transaction, the executive vice president directly owned 39,500 shares in the company, valued at $477,555. The trade was a 30.09% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 36,000 shares of company stock valued at $447,890 in the last 90 days. 33.40% of the stock is owned by insiders.

Richardson Electronics Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, May 27th. Investors of record on Friday, May 8th will be paid a dividend of $0.06 per share. The ex-dividend date of this dividend is Friday, May 8th. This represents a $0.24 annualized dividend and a yield of 1.8%. Richardson Electronics's dividend payout ratio (DPR) is presently 88.89%.

Key Richardson Electronics News

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

• Positive Sentiment: Q3 results beat expectations — EPS $0.07 vs. consensus $0.05 and revenue $55.47M vs. $53.1M consensus, showing sales growth that surprised analysts. Zacks: RELL Tops Q3
• Positive Sentiment: Management highlighted stricter cost control, strength in the PMT (power & microwave tube) segment and a stronger backlog that supports revenue visibility and a move toward profitability. TipRanks: Backlog & Profitability
• Positive Sentiment: Board declared a quarterly cash dividend of $0.06/share (payable late May), which supports income-focused investors. FinanzNachrichten: Dividend Declared
• Neutral Sentiment: Full earnings call/transcript and corporate commentary are available for investors wanting detail on guidance, backlog conversion and margins (useful for modeling). Seeking Alpha: Call Transcript Yahoo: Earnings Highlights
• Negative Sentiment: Profitability metrics remain thin: net margin ~1.75%, ROE ~2.8%, and Q3 EPS is still below last year’s $0.11 — investors may be cautious about sustainable margin improvement. MarketBeat: Earnings Summary
• Negative Sentiment: Shares ran up sharply earlier (reports of a ~20% intraday jump), increasing the risk of short‑term profit-taking and a pullback — today’s decline looks driven by that combination of profit-taking and lingering valuation concerns (RELL’s trailing P/E is elevated). MSN: Intraday Rally

About Richardson Electronics

Richardson Electronics, Ltd. NASDAQ: RELL is a global manufacturer, distributor and servicer of engineered components and subsystems for a diverse range of industrial, medical and scientific applications. The company specializes in vacuum electron devices, high-voltage power supplies and related electronic components, offering klystrons, traveling wave tubes, magnetrons, X-ray tubes, microwave amplifiers and power conversion products. Its solutions support customers in power grid management, semiconductor processing, medical imaging, scientific instrumentation and telecommunications.

In addition to its manufacturing capabilities, Richardson Electronics maintains a broad distribution network comprising thousands of standard and custom parts.

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