Richardson Electronics Plunges 28.4% on Revenue Miss

On April 10, 2025, Richardson Electronics experienced a significant drop of 28.4% in pre-market trading, marking a notable decline in its stock performance.

Richardson Electronics recently reported its quarterly earnings, revealing earnings of $0.11 per share, which met analyst estimates. However, the company's revenue of $53.8 million fell short of the anticipated $55.83 million, indicating a slight miss in revenue expectations.

Despite the revenue shortfall, the company's semiconductor wafer fab sales surged by 139%, and Canvys sales increased by 39.5%. This growth was attributed to higher demand in the Power and Microwave Technologies Group, which contributed to a 2.7% year-over-year increase in net sales.

Additionally, Richardson Electronics reported positive operating cash flow for the fourth consecutive quarter, demonstrating the company's financial stability and operational efficiency. The company also declared a quarterly dividend of $0.06 per share, maintaining its dividend policy and providing a forward yield of 2.45%.

Insider trading activity within the company has been relatively balanced, with four purchases and one sale over the past six months. Notable insiders, including James Benham and Paul J. Plante, have made significant purchases, while Robert J. Ben, the CFO, sold shares. This activity suggests a mix of confidence and caution among company insiders.

Institutional investors have shown varied interest in Richardson Electronics, with 35 adding shares to their portfolios and 32 decreasing their positions. This mixed sentiment among institutional investors reflects the company's complex financial performance and market outlook.