Electronics distributor Richardson Electronics (NASDAQ: RELL) will be announcing earnings results this Wednesday afternoon. Here’s what to look for.

Richardson Electronics beat analysts’ revenue expectations last quarter, reporting revenues of $55.47 million, up 3.1% year on year. It was an incredible quarter for the company, with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

Is Richardson Electronics a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, the market is expecting Richardson Electronics’s revenue to grow 6.7% year on year, slowing from the 9.5% increase it recorded in the same quarter last year.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Richardson Electronics has missed Wall Street’s revenue estimates multiple times over the last two years.

Looking at Richardson Electronics’s peers in the industrial distributors segment, some have already reported their Q2 results, giving us a hint as to what we can expect. MSC Industrial delivered year-on-year revenue growth of 7.8%, beating analysts’ expectations by 1.3%, and Fastenal reported revenues up 14.7%, topping estimates by 1.9%. MSC Industrial traded up 3.2% following the results while Fastenal was down 3.6%.

Read our full analysis of MSC Industrial’s results here and Fastenal’s results here.

Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the economy). While some of the industrial distributors stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 4% on average over the last month. Richardson Electronics is down 8.8% during the same time and is heading into earnings with an average analyst price target of $14.50 (compared to the current share price of $16.71).

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