Richardson Electronics Stock Downgraded (RELL)
- RICHARDSON ELECTRONICS LTD has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, RICHARDSON ELECTRONICS LTD swung to a loss, reporting -$0.04 versus $0.04 in the prior year.
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Electronic Equipment, Instruments & Components industry. The net income has significantly decreased by 1267.4% when compared to the same quarter one year ago, falling from -$0.18 million to -$2.48 million.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market, RICHARDSON ELECTRONICS LTD's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for RICHARDSON ELECTRONICS LTD is currently lower than what is desirable, coming in at 29.57%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -6.99% is significantly below that of the industry average.
- The share price of RICHARDSON ELECTRONICS LTD has not done very well: it is down 13.72% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
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