Transcat (NASDAQ:TRNS) Announces Quarterly Earnings Results

Transcat (NASDAQ:TRNS) announced its quarterly earnings data on Tuesday. The scientific and technical instruments company reported $0.26 earnings per share for the quarter, missing the consensus estimate of $0.30 by ($0.04), FiscalAI reports. The company had revenue of $83.86 million for the quarter, compared to analyst estimates of $80.99 million. Transcat had a net margin of 2.47% and a return on equity of 6.17%.

Here are the key takeaways from Transcat’s conference call:

• Consolidated results were strong — Q3 revenue rose 26% to $83.9M, consolidated gross profit grew 28%, and Adjusted EBITDA increased 27% to $10.1M, with modest margin expansion.
• Service momentum and guidance — organic service revenue returned to 7% growth (67th consecutive quarter of YoY growth) and management reaffirmed high-single-digit organic service growth guidance for Q4, though near-term margins are pressured by onboarding costs that should normalize over a few quarters.
• Distribution strength from rentals — distribution revenue rose 20% to $30.2M, with gross margin expanding ~330 basis points driven by a higher mix of rental revenue and strong demand in data-center/power-generation product and rental markets.
• Acquisitions increasing scale — the Martin Calibration and Essco Calibration deals expanded Transcat’s footprint and capabilities, are contributing to revenue and synergies, and management says the balance sheet (total debt $99.9M, leverage ~2x, $50.1M revolver capacity) supports continued M&A.
• One-time charges and higher non-cash costs weighed on GAAP results — Q3 reported a net loss of $1.1M driven by acquisition-related amortization, higher interest, and CEO succession one-time charges, with management flagging additional succession-related expenses expected in Q4.

Transcat Trading Up 11.5%

NASDAQ TRNS opened at $70.64 on Thursday. Transcat has a 12 month low of $50.23 and a 12 month high of $97.08. The company has a current ratio of 2.43, a quick ratio of 2.06 and a debt-to-equity ratio of 0.38. The firm has a market capitalization of $658.93 million, a P/E ratio of 83.11 and a beta of 0.79. The business has a fifty day simple moving average of $59.55 and a 200 day simple moving average of $68.45.

Institutional Investors Weigh In On Transcat

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in shares of Transcat by 6.3% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 5,462 shares of the scientific and technical instruments company’s stock valued at $407,000 after acquiring an additional 325 shares in the last quarter. Verition Fund Management LLC boosted its position in Transcat by 6.4% in the third quarter. Verition Fund Management LLC now owns 8,982 shares of the scientific and technical instruments company’s stock worth $657,000 after purchasing an additional 539 shares during the last quarter. Legal & General Group Plc boosted its position in Transcat by 6.1% in the second quarter. Legal & General Group Plc now owns 9,551 shares of the scientific and technical instruments company’s stock worth $821,000 after purchasing an additional 548 shares during the last quarter. Lazard Asset Management LLC purchased a new stake in shares of Transcat during the 2nd quarter valued at $54,000. Finally, Russell Investments Group Ltd. raised its stake in shares of Transcat by 14.1% during the 3rd quarter. Russell Investments Group Ltd. now owns 6,353 shares of the scientific and technical instruments company’s stock worth $465,000 after purchasing an additional 785 shares during the period. Hedge funds and other institutional investors own 98.34% of the company’s stock.

Wall Street Analyst Weigh In

A number of analysts recently commented on the company. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of Transcat in a research report on Monday, December 29th. Zacks Research downgraded Transcat from a “hold” rating to a “strong sell” rating in a report on Tuesday. Finally, Northland Securities set a $95.00 target price on Transcat in a research report on Thursday, October 23rd. One research analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and two have assigned a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of “Hold” and an average target price of $105.33.

Transcat Company Profile

Transcat, Inc (NASDAQ: TRNS) is a leading provider of calibration, laboratory, and metrology services in North America. Founded in 1964 and headquartered in Ronkonkoma, New York, the company specializes in ensuring the accuracy and compliance of measurement instruments across a wide range of industries. Transcat operates a network of ISO/IEC 17025–accredited laboratories and offers on-site field calibration, instrument repair, and preventive maintenance services.

In addition to its calibration services, Transcat distributes precision instrumentation and related software solutions from top manufacturers.