NASDAQ$RELL

Richardson Electronics Ltd · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Richardson Electronics reported net income for the third quarter of fiscal year 2022 and declared a quarterly cash dividend.

Richardson Electronics reported a 22.3% increase in net sales to $55.3 million for the third quarter of fiscal 2022, driven by growth in all three business units. Net income increased to $2.9 million, or $0.21 per diluted share, compared to $0.2 million, or $0.02 per diluted share, in the prior year's third quarter. The company's backlog also increased to $175.6 million.

  • Net sales increased by 22.3% compared to the third quarter of fiscal year 2021, reaching $55.3 million.
  • Sales increased across all business units: PMT, Canvys, and Healthcare.
  • Backlog grew to $175.6 million, up from $146.9 million in the previous quarter and $98.7 million in the third quarter of the last fiscal year.
  • Operating income rose to $3.6 million compared to $0.3 million in the third quarter of fiscal year 2021.

Headline financials

Total Revenue

$55.3M

Previous: $45.2M+22.3%
EPS (adj)

$0.21

Previous: $0.14+50.0%
Gross Margin

31.8%

Previous: 34.9%-8.9%
Free Cash Flow

$2.89M

Previous: $228K+1166.2%
Net Income

$2.89M

Previous: $228K+1166.2%
Operating Income

$3.62M

Previous: $315K+1050.2%
Gross Profit

$17.6M

Previous: $15.8M+11.4%
Cash & Equivalents

$39.1M

Previous: $38.4M+1.9%
Total Assets

$171M

Previous: $154M+10.9%

Revenue & EPS history

Richardson Electronics · Revenue · Quarterly

$55.3M

Q3 2022+22.3%vs Q3 2021
Beat estimate in 8 of 13 quarters(62%)
ActualEstimate

Revenue by segment

Richardson Electronics · $50M total across 3 segments · Q1 2024

  • Power & Microwave Tech
    $35.7M-21.2%
  • Canvys
    $9.89M-5.0%
  • Green Energy Solutions
    $4.39M

Forward guidance

Company remains confident that despite the challenging economic environment, fiscal year 2022 will finish with strong sales and improved profitability.

Tailwinds

  • Continued growth in backlog in all three business units.
  • New customers expressing interest in growing range of engineered solutions.
  • Strong sales expected for the remainder of fiscal year 2022.
  • Improved profitability anticipated for fiscal year 2022.
  • Demand within PMT was driven by strong growth from new Power and Microwave Technology partners for various applications including Power Management and 5G infrastructure, as well as increasing shipments of our patented ULTRA3000.

Headwinds

  • Challenging economic environment.
  • Gross margin decreased to 31.8% due to product mix and higher global freight costs.
  • PMT margin decreased to 32.2% from 34.9% primarily due to product mix.
  • Canvys margin decreased to 32.2% from 35.2% because of higher global freight costs.
  • Healthcare gross margin was 25.1% compared to 33.0% due to an increase in component scrap expense and rising freight costs.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2022

Historical avgQ3 2022

+0.4%

Avg return

Earnings day

+1.8%

Avg return

5 days after

+2.2%

Avg return

30 days after

52%

33 / 64 earnings

Positive

+25.2%

Q1 2023

Best reaction

-19.9%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026+21.6%+15.3%+30.8%
Q2 2026-11.8%+4.1%+10.2%
Q1 2026+11.0%+10.3%-1.9%
Q3 2025-17.1%-16.4%-9.2%
Q2 2025-13.5%-12.4%-11.9%
Q1 2025+0.7%+5.2%+17.3%
Q4 2024-0.9%+4.9%+4.8%
Q3 2024+15.1%+5.9%+11.1%
Q2 2024-19.9%-17.7%-22.4%
Q1 2024-5.8%-3.9%-2.0%
Q4 2023-14.2%-15.1%-26.3%
Q3 2023-15.9%-10.8%-27.7%
Q2 2023-15.0%+5.1%+14.1%
Q1 2023+25.2%+27.0%+53.1%
Q4 2022-6.2%+0.1%+6.2%
Q3 2022-5.1%-8.4%-2.2%
Q2 2022+9.5%+15.7%-7.9%
Q1 2022+17.4%+10.6%+18.4%
Q4 2021+4.2%-1.3%+0.4%
Q3 2021+6.7%+8.0%+6.9%
Q2 2021+20.9%+24.5%+29.1%
Q1 2021+7.3%+4.2%+2.8%
Q4 2020-2.6%-0.5%+5.9%
Q3 2020+12.5%+8.6%+12.7%
Q2 2020-4.7%-5.4%-15.5%
Q1 2020-0.5%+1.7%-2.9%
Q4 2019+0.0%-0.2%+0.2%
Q3 2019-5.6%-10.7%-13.1%
Q2 2019-7.7%-8.0%-11.2%
Q1 2019-7.2%-7.3%-14.8%
Q4 2018+1.2%+3.6%-4.3%
Q3 2018+3.7%+8.2%+15.4%
Q2 2018+14.2%+17.2%+11.1%
Q1 2018+13.6%+10.4%+6.4%
Q4 2017-2.2%-3.0%-5.5%
Q3 2017+4.1%+3.6%+6.8%
Q2 2017-1.3%-0.8%-3.0%
Q1 2017-6.6%-8.1%-11.7%
Q4 2016+4.7%+4.7%+16.1%
Q3 2016+1.9%
Q2 2016-2.3%
Q1 2016+3.5%
Q4 2015-8.4%
Q3 2015+1.1%
Q2 2015-0.9%
Q1 2015-1.1%
Q4 2014+2.0%
Q3 2014-5.4%
Q2 2014+0.3%
Q1 2014+3.0%
Q4 2013-1.3%
Q3 2013-0.9%
Q2 2013+0.3%
Q1 2013-2.1%
Q4 2012+0.2%
Q3 2012+1.9%
Q2 2012+0.7%
Q1 2012-2.7%
Q4 2011+0.2%
Q3 2011+1.6%
Q2 2010+0.1%
Q1 2010+1.5%
Q4 2010+5.0%
Q3 2009-0.3%

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