NASDAQ$RELL

Richardson Electronics Ltd · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Reported a decrease in net sales and operating income due to declines in PMT, Canvys, and Healthcare, offset by growth in GES.

Richardson Electronics reported a 4.5% decrease in net sales and a decrease in operating income for the fourth quarter of fiscal 2023. The decline in sales was driven by decreases in the PMT, Canvys and Healthcare business units, partially offset by an increase in sales for GES. Fiscal 2023 was one of the best years in the company's history, with operating income increasing year-over-year by nearly 57%, on a 16.9% increase in net sales.

  • Net sales decreased 4.5% to $58.8 million compared to the prior year's fourth quarter.
  • Green Energy Solutions (GES) net sales increased 61.7% versus the prior year’s fourth quarter.
  • Operating income was $1.4 million compared to $5.0 million for the fourth quarter of fiscal 2022.
  • Earnings per common share (diluted) were $0.27 and Non-GAAP earnings per common share (diluted) were $0.11.

Headline financials

Total Revenue

$58.8M

Previous: $61.6M-4.5%
EPS (adj)

$0.11

Previous: $0.31-64.5%
Gross Margin

27.9%

Previous: 32.7%-14.7%
Net Income

$4.12M

Previous: $8.28M-50.3%
Operating Income

$1.4M

Previous: $4.99M-71.9%
Gross Profit

$16.4M

Previous: $20.2M-18.7%
Cash & Equivalents

$25M

Previous: $35.5M-29.6%
Total Assets

$198M

Previous: $180M+10.1%

Revenue & EPS history

Richardson Electronics · Revenue · Quarterly

$58.8M

Q4 2023-4.5%vs Q4 2022
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Revenue by segment

Richardson Electronics · $56M total across 3 segments · Q4 2023

  • Power & Microwave Tech
    $31.5M-36.0%
  • Green Energy Solutions
    $15.3M
  • Canvys
    $9.15M-3.2%

Forward guidance

The company expects the semiconductor wafer fab market to remain challenging over the next several quarters, but anticipates that growth from the GES business will help offset the expected fiscal 2024 sales decrease in the semi-conductor wafer fabrication equipment business.

Tailwinds

  • Expansion of customer relationships
  • Development of new engineered solutions for new applications
  • Benefiting from positive industry demand
  • Pursuing significant long-term opportunities across business units
  • Continued growth from GES business

Headwinds

  • Weaker demand from semiconductor wafer fab customers
  • 20.8% decrease in PMT sales
  • Semiconductor wafer fab market to remain challenging over the next several quarters
  • Product mix affecting gross margin
  • Anticipated fiscal 2024 sales decrease in the semi-conductor wafer fabrication equipment business

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 Q4 2023

Historical avgQ4 2023

+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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