Sidoti Predicts Stronger Earnings for Richardson Electronics

Key Points

• Sidoti raised its FY2026 EPS estimate to $0.25 (from $0.22) and projects FY2028 EPS of $0.60, signaling an expected acceleration in earnings into 2028.
• However, Sidoti trimmed several near‑term quarterly estimates (notably Q3'27 and Q4'27), suggesting short‑term softness that could pressure upcoming results, while Northland models higher FY2027 upside (~$0.39) versus consensus (~$0.27).
• Richardson recently beat the quarter with $0.07 EPS versus a $0.05 consensus and $55.47M revenue, the company pays a $0.06 quarterly dividend (1.7% yield), and insiders have been selling shares amid sizable institutional ownership.

Richardson Electronics, Ltd. (NASDAQ:RELL - Free Report) - Analysts at Sidoti upped their FY2026 earnings estimates for shares of Richardson Electronics in a note issued to investors on Monday, April 13th. Sidoti analyst A. Soderstrom now expects that the technology company will earn $0.25 per share for the year, up from their previous estimate of $0.22. The consensus estimate for Richardson Electronics' current full-year earnings is $0.27 per share. Sidoti also issued estimates for Richardson Electronics' Q4 2026 earnings at $0.06 EPS, Q1 2027 earnings at $0.09 EPS, Q2 2027 earnings at $0.10 EPS, Q3 2027 earnings at $0.10 EPS, Q4 2027 earnings at $0.10 EPS, Q1 2028 earnings at $0.14 EPS, Q2 2028 earnings at $0.15 EPS, Q3 2028 earnings at $0.15 EPS and FY2028 earnings at $0.60 EPS.

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

RELL has been the subject of a number of other research reports. Weiss Ratings reiterated a "sell (d+)" rating on shares of Richardson Electronics in a research report on Wednesday, April 8th. Northland Securities set a $14.00 price target on Richardson Electronics in a research report on Friday. One equities research analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, Richardson Electronics currently has an average rating of "Reduce" and a consensus target price of $14.00.

Richardson Electronics Trading Up 3.1%

NASDAQ RELL opened at $13.77 on Tuesday. The company has a 50-day moving average price of $12.05 and a two-hundred day moving average price of $11.20. The stock has a market cap of $199.94 million, a price-to-earnings ratio of 51.00, a price-to-earnings-growth ratio of 2.22 and a beta of 1.13. Richardson Electronics has a 52 week low of $7.90 and a 52 week high of $15.34.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in RELL. AMH Equity Ltd bought a new position in shares of Richardson Electronics in the third quarter valued at approximately $783,000. Marshall Wace LLP bought a new position in shares of Richardson Electronics in the fourth quarter valued at approximately $626,000. Walleye Capital LLC bought a new position in shares of Richardson Electronics in the fourth quarter valued at approximately $497,000. Susquehanna International Group LLP boosted its holdings in shares of Richardson Electronics by 840.6% in the third quarter. Susquehanna International Group LLP now owns 48,740 shares of the technology company's stock valued at $477,000 after acquiring an additional 43,558 shares in the last quarter. Finally, Nano Cap New Millennium Growth Fund L P bought a new position in shares of Richardson Electronics in the fourth quarter valued at approximately $462,000. 71.95% of the stock is currently owned by institutional investors.

Insider Activity

In other news, Director Kenneth Halverson sold 10,000 shares of the stock in a transaction that occurred on Thursday, February 12th. The shares were sold at an average price of $13.09, for a total value of $130,900.00. Following the completion of the transaction, the director directly owned 14,345 shares in the company, valued at $187,776.05. This trade represents a 41.08% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, CFO Robert J. Ben sold 5,000 shares of the 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 completion of 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 ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 36,000 shares of company stock worth $447,890 over the last three months. Corporate insiders own 33.40% of the company's stock.

Richardson Electronics Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, May 27th. Stockholders of record on Friday, May 8th will be issued a $0.06 dividend. The ex-dividend date is Friday, May 8th. This represents a $0.24 annualized dividend and a dividend yield of 1.7%. Richardson Electronics's dividend payout ratio (DPR) is 88.89%.

Richardson Electronics News Roundup

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

• Positive Sentiment: Sidoti raised its FY2026 estimate to $0.25 (from $0.22) and projects FY2028 EPS of $0.60, signaling a stronger medium‑term recovery that could justify higher forward multiples. MarketBeat Research Note
• Positive Sentiment: Northland’s model shows a higher FY2027 view ($0.39) versus the current consensus (~$0.27), suggesting potential upside to consensus estimates if execution improves. MarketBeat Research Note
• Positive Sentiment: Sidoti’s 2028 quarterly run‑rate forecasts (Q1–Q3 2028 at ~$0.14–0.15) imply accelerating earnings into 2028, providing a clearer path to the raised FY2028 target. MarketBeat Research Note
• Neutral Sentiment: Both firms published a full slate of quarterly forecasts (Q4'26–Q3'28), improving visibility for investors but leaving consensus near current levels (~$0.27 FY). This provides modeling detail but not an immediate earnings surprise. MarketBeat Research Note
• Negative Sentiment: Sidoti cut several near‑term estimates — notable reductions include Q3'27 (from $0.16 to $0.10) and Q4'27 (from $0.17 to $0.10) — indicating expected near‑term softness that could pressure upcoming quarterly results. MarketBeat Research Note
• Negative Sentiment: Northland trimmed Q4'26 and other quarterly EPS (e.g., Q4'26 to $0.07 from $0.11), reinforcing the picture of a weaker short‑term revenue/earnings mix. MarketBeat Research Note

Richardson Electronics Company Profile

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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