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RELL — Richardson Electronics News Story

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Richardson Electronics Q1 net sales rise as PMT, GES demand grows

Richardson Electronics Q1 net sales rise as PMT, GES demand grows


Overview

  • US engineered solutions maker's fiscal Q1 net sales rose 18.9% yr/yr with growth in all units

  • Fiscal Q1 net income more than doubled, with EPS rising to $0.27

  • Company backlog rose 36.9% yr/yr to highest level in over three years


Outlook

  • Company expects profitable growth in fiscal 2027, citing strong backlog and customer demand

  • Company says it is focused on efficiency and strategic growth amid uncertain economic conditions


Result Drivers

  • PMT DEMAND - Co said strong demand for engineered solutions in semiconductor wafer fabrication and RF/microwave products drove PMT sales growth

  • GES AND CANVYS SALES - Co said higher sales of wind products and new Battery Energy Storage Systems (BESS) supported GES growth, while Canvys saw increased sales in North America

  • GROSS MARGIN IMPROVEMENT - Co said gross margin rose due to product mix and a one-time IEEPA Tariff Refund


Company press release: ID:nGNXbTZdMv


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q1 Sales

Beat

$64.92 mln

$58.99 mln (2 Analysts)

Q1 EPS

$0.27

Q1 Net Income

$4.06 mln

Q1 Gross Margin

34.60%

Q1 Operating Income

$5.12 mln


Analyst Coverage

  • The one available analyst rating on the shares is "buy"

  • The average consensus recommendation for the electronic equipment & parts peer group is "buy"

  • Wall Street's median 12-month price target for Richardson Electronics Ltd is $20.50, about 7.6% above its October 6 closing price of $19.05

  • The stock recently traded at 32 times the next 12-month earnings vs. a P/E of 40 three months ago


Reuters Recommended Reads

  • Oct 6 - Penguin Solutions Q4 revenue jumps 68%; raises FY27 guidance as AI infrastructure demand accelerates

  • Oct 6 - Neogen Q1 results beat estimates on Food Safety segment growth, raises FY27 guidance

  • Oct 6 - AMD plans to substantially increase supply in 2027, CEO says


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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