- 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 12.84% 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.
- 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. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, RICHARDSON ELECTRONICS LTD swung to a loss, reporting -$0.04 versus $0.04 in the prior year. This year, the market expects an improvement in earnings ($0.06 versus -$0.04).
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. All three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 154 points (0.9%) at 17,210 as of Wednesday, Sept. 24, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,794 issues advancing vs. 1,244 declining with 169 unchanged. The Wholesale industry as a whole closed the day up 0.5% versus the S&P 500, which was up 0.8%. Top gainers within the Wholesale industry included Forward Industries ( FORD), up 3.0%, Hudson Technologies ( HDSN), up 6.3%, Wayside Technology Group ( WSTG), up 2.2%, Richardson Electronics ( RELL), up 1.8% and Speed Commerce ( SPDC), up 4.0%. TheStreet Ratings Group would like to highlight 3 stocks pushing the industry higher today: Richardson Electronics ( RELL) is one of the companies that pushed the Wholesale industry higher today. Richardson Electronics was up $0.18 (1.8%) to $10.13 on average volume. Throughout the day, 34,276 shares of Richardson Electronics exchanged hands as compared to its average daily volume of 36,300 shares. The stock ranged in a price between $9.98-$10.20 after having opened the day at $10.03 as compared to the previous trading day's close of $9.95. Richardson Electronics, Ltd. provides engineered solutions, power grid microwave tubes and related components, and customized display solutions. Richardson Electronics has a market cap of $117.9 million and is part of the services sector. Shares are down 12.4% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Richardson Electronics a buy, no analysts rate it a sell, and none rate it a hold. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreet Ratings rates Richardson Electronics as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share. Highlights from TheStreet Ratings analysis on RELL go as follows: