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Q1 Earnings Highlights: Richardson Electronics (NASDAQ:RELL) Vs The Rest Of The Specialty Equipment Distributors Stocks


Anthony Lee /
2024/07/03 5:28 am EDT

As the Q1 earnings season wraps, let's dig into this quarter's best and worst performers in the specialty equipment distributors industry, including Richardson Electronics (NASDAQ:RELL) and its peers.

Historically, specialty equipment distributors have boasted deep selection and expertise in sometimes narrow areas like single-use packaging or unique lighting equipment. Additionally, the industry has evolved to include more automated industrial equipment and machinery over the last decade, driving efficiencies and enabling valuable data collection. Specialty equipment distributors whose offerings keep up with these trends can take share in a still-fragmented market, but like the broader industrials sector, this space is at the whim of economic cycles that impact the capital spending and manufacturing propelling industry volumes.

The 9 specialty equipment distributors stocks we track reported a slower Q1; on average, revenues beat analyst consensus estimates by 0.8%. Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market was optimistic at the end of 2023 due to cooling inflation. The start of 2024 has been a different story as mixed signals have led to market volatility, and specialty equipment distributors stocks have had a rough stretch, with share prices down 13.8% on average since the previous earnings results.

Richardson Electronics (NASDAQ:RELL)

Founded in 1947, Richardson Electronics (NASDAQ:RELL) is a distributor of power grid and microwave tubes as well as consumables related to those products.

Richardson Electronics reported revenues of $52.38 million, down 25.6% year on year, falling short of analysts' expectations by 6.5%. It was a strong quarter for the company, with an impressive beat of analysts' earnings estimates.

Richardson Electronics Total Revenue

Richardson Electronics delivered the slowest revenue growth of the whole group. The stock is up 26.2% since the results and currently trades at $11.78.

Is now the time to buy Richardson Electronics? Access our full analysis of the earnings results here, it's free.

Best Q1: Hudson Technologies (NASDAQ:HDSN)

Founded in 1991, Hudson Technologies (NASDAQ:HDSN) specializes in refrigerant services and solutions, providing refrigerant sales, reclamation, and recycling.

Hudson Technologies reported revenues of $65.25 million, down 15.5% year on year, outperforming analysts' expectations by 7.5%. It was a stunning quarter for the company, with a solid beat of analysts' earnings estimates.

Hudson Technologies Total Revenue

Hudson Technologies delivered the biggest analyst estimates beat among its peers. The stock is down 13.5% since the results and currently trades at $8.46.

Is now the time to buy Hudson Technologies? Access our full analysis of the earnings results here, it's free.

Weakest Q1: Karat Packaging (NASDAQ:KRT)

Founded as Lollicup, Karat Packaging (NASDAQ: KRT) distributes and manufactures environmentally-friendly disposable foodservice packaging solutions.

Karat Packaging reported revenues of $95.61 million, down 0.2% year on year, falling short of analysts' expectations by 4.2%. It was a weak quarter for the company, with a miss of analysts' earnings estimates.

The stock is down 3.1% since the results and currently trades at $28.

Read our full analysis of Karat Packaging's results here.

H&E Equipment Services (NASDAQ:HEES)

Founded in 1961, H&E Equipment Services (NASDAQ:HEES) provides equipment rental, sales, and maintenance services to construction and industrial sectors.

H&E Equipment Services reported revenues of $371.4 million, up 15.2% year on year, surpassing analysts' expectations by 5.3%. It was a weaker quarter for the company, with a miss of analysts' earnings estimates.

The stock is down 26.9% since the results and currently trades at $43.32.

Read our full, actionable report on H&E Equipment Services here, it's free.

Xometry (NASDAQ:XMTR)

Coming to market in 2021, Xometry (NASDAQ:XMTR) is an online marketplace connecting manufacturers with customers who need custom parts and products.

Xometry reported revenues of $122.7 million, up 16.5% year on year, surpassing analysts' expectations by 2.4%. However, it missed analysts' GAAP EPS estimates.

Xometry pulled off the fastest revenue growth among its peers. The company added 3,179 customers to reach a total of 58,504. The stock is down 24.6% since the results and currently trades at $11.67.

Read our full, actionable report on Xometry here, it's free.

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