Richardson Electronics Ltd. (RELL, Financial) opened nearly 10% higher on the back of the company posting its financial results for the second quarter of fiscal 2018. For the quarter ended Dec. 2, the company reported annual net sales growth of 15.6% to $39.10 million, while its profit advanced to once cent per share. Moreover, the results exceeded earnings estimates of nine cents and revenue expcetations of $4 million.
Chairman, President and CEO Edward J. Richardson said its investments in improving its business are starting to bear fruit.
“PMT and Canvys experienced double-digit sales growth with improved gross margin over the prior year’s second quarter," he said." In addition, after adjusting for the loss of sales from the divestiture of the PACS Display business, sales in Richardson Healthcare also increased. We made great strides in our new CT Tube development and backlog remains strong for both PMT and Canvys”
The gross margin increased to $13.4 million, or 34.2% of net sales, an improvement from $11 million, or 32.4% of net sales, in the prior-year quarter. The margin improvement was driven by favorable product mix and the sale of its lower margin PACS Display business.
The company also declared a quarterly dividend of six cents per share.
Macy's Inc. (M, Financial) rose on news the retailer laid off 436 workers after closing three California stores. The move is part of a company reorganization announced after holiday results. Over the past week, the company closed 11 stores, reaching a total of 84 out of 100 planned closings.
Shares of French retailer Carrefour SA (XPAR:CA, Financial) (CRRFY, Financial) fell after the company annoucned it will buy a 17% stake in French online fashion retailer Showroomprive.com for 79 million euros ($94.5 million) from furniture chain Conforama.
"This partnership is a new step in the acceleration of our digital strategy, in an omni-channel approach," Carrefour CEO Alexandre Bompard said.
Disclosure: The author holds no positions in any stocks mentioned.
