The chart below shows how RELL performed 10 days before and after its earnings report, based on data from the past quarters. Typically, RELL sees a +0.22% change in stock price 10 days leading up to the earnings, and a +0.08% change 10 days following the report. On the earnings day itself, the stock moves by -0.63%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Net Sales Increase: Consolidated net sales for the second quarter of fiscal 2025 increased 12.1% to $49.5 million compared to net sales of $44.1 million in the prior year's second quarter.
Sales Growth Momentum: This was our second consecutive quarterly year-over-year increase in sales.
Net Sales Growth Highlights: Second quarter net sales growth was led by a 129% increase in sales for our Green Energy Solutions business unit and a 9.9% increase in PMT sales, which is due primarily to higher sales to semiconductor wafer fab customers.
Q2 Sales Increase: Overall, second quarter sales reached $49.5 million, exceeding the $44.1 million we recorded in our Q2 last year, a solid 12% year-over-year increase.
Positive Free Cash Flow: We generated positive free cash flow during the quarter.
Negative
Health Care Sales Decline: In the second quarter of fiscal year 2025, our health care division generated $2.3 million in sales, reflecting a 22.8% year-over-year decline.
Decline in Product Performance: All product lines experienced lower performance compared to the prior year.
Gross Margin Improvement: Despite the sales drop, gross margin improved to 35.7%, up from 14.8% in the same period last year and 32.3% in Q1.
Gross Margin Decline: Consolidated gross margin for the second quarter was 31.7% of net sales compared to 33.5% in the same fiscal 2024 period, largely due to increased freight costs.
Operating Loss Comparison: Operating loss was $0.7 million for the second quarter of fiscal 2025 versus an operating loss of $2.0 million in the second quarter of last year.
Richardson Electronics, Ltd. (RELL) Q2 2025 Earnings Call Transcript
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