Richey Electronics Stock Dives on Poor Projection

Shares of Richey Electronics Inc. fell 21% Wednesday, a day after the company said its third-quarter results would would fall short of analysts’ estimates.

The wholesaler of electronic parts blamed the disappointing projection on a downturn in orders from computer and telecommunications manufacturers. The company said its customers are increasingly trying to keep inventory low by ordering products only when they are needed.

Richey said it doesn’t expect to meet expectations that it will earn 21 cents a share in the third quarter ending in September. The company earned $1.1 million, or 12 cents a share, in the same period a year ago. It also said it doesn’t expect to match the 18 cents a share it earned in the second quarter, and also will fall short of the period’s $58.2 million of sales.

The company said, however, that it has taken aggressive actions to cut its costs and improve efficiency in order to protect its profitability.

The company released its earnings outlook after markets closed Tuesday. On Wednesday, Richey stock fell $2.125 a share to close at $7.875 on the Nasdaq market.