NASDAQ$RCMT

RCM Technologies Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

RCM Technologies reported a decrease in revenue and net income for the second quarter of 2023.

RCM Technologies reported a decrease in revenue by 9.8% and a decrease in net income to $4.0 million for the thirteen weeks ended July 1, 2023. Despite a slow start to the year in Engineering, the company maintained its strategy of building a differentiated platform and anticipates a healthy double-digit earnings increase in the fourth quarter.

  • Revenue decreased by 9.8% compared to the prior-year period.
  • Gross profit decreased by 13.5% compared to the prior-year period.
  • GAAP net income decreased to $4.0 million, or $0.47 per diluted share.
  • The company anticipates a healthy double-digit earnings increase in the fourth quarter.

Headline financials

Total Revenue

$67M

Previous: $74.3M-9.8%
EPS (adj)

$0.47

Previous: $0.57-17.5%
Capital Expenditures

-$559K

Previous: -$409K-36.7%
Free Cash Flow

$3.42M

Previous: $5.61M-38.9%
Net Income

$3.98M

Previous: $6.01M-33.8%
Operating Income

$5.75M

Previous: $8.19M-29.8%
Gross Profit

$18.8M

Previous: $21.7M-13.5%
Cash & Equivalents

$1.27M

Previous: $3.11M-59.1%
Total Assets

$106M

Previous: $72.4M+45.7%
Stock-Based Comp

$471K

Previous: $302K+56.0%

Revenue & EPS history

RCM Technologies · Revenue · Quarterly

$67M

Q2 2023-9.8%vs Q2 2022
Beat estimate in 3 of 14 quarters(21%)
ActualEstimate

Revenue by segment

RCM Technologies · $56.5M total across 2 segments · Q2 2023

  • Specialty Healthcare
    $35.5M
  • Engineering
    $21M

Forward guidance

Company believes they are set up for a healthy double-digit earnings increase in the fourth quarter, consistent with their long-term trajectory. Also, they expect to continue to see strong cash flow from operations during the second half of fiscal 2023.

Tailwinds

  • Set up for a healthy double-digit earnings increase in the fourth quarter
  • Consistent with long-term trajectory
  • Expect to continue to see strong cash flow from operations during the second half of fiscal 2023

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 18 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

-0.2%

Avg return

Earnings day

+1.7%

Avg return

5 days after

+6.3%

Avg return

30 days after

46%

30 / 65 earnings

Positive

+48.2%

Q1 2022

Best reaction

-25.0%

Q4 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025+4.3%+10.5%
Q1 2026-0.6%-23.2%-11.8%
Q3 2025-9.3%-13.0%-9.6%
Q2 2025-4.6%+1.1%+14.9%
Q1 2025+0.8%-1.0%-2.1%
Q4 2024-13.5%-10.2%-10.9%
Q3 2024+5.2%+13.5%+5.1%
Q2 2024+6.1%+2.1%+4.6%
Q1 2024+8.8%+12.8%+2.7%
Q4 2023-25.0%-23.5%-32.4%
Q3 2023+14.7%+31.0%+41.7%
Q2 2023-12.3%+3.2%-1.5%
Q1 2023+5.1%+15.2%+39.2%
Q4 2022+0.3%-4.5%-6.3%
Q3 2022-12.3%-19.4%-28.2%
Q2 2022-16.3%-3.2%-6.0%
Q1 2022+48.2%+59.2%+106.2%
Q4 2021+11.9%+42.9%+98.4%
Q3 2021-0.8%+11.6%+30.1%
Q2 2021-3.8%-5.6%+35.7%
Q1 2021+0.6%+3.5%+9.8%
Q3 2020+3.7%+0.7%+22.2%
Q2 2020+2.5%+8.7%-11.3%
Q1 2020-17.9%-23.7%+18.4%
Q4 2019+5.1%+2.6%-47.1%
Q3 2019-4.4%-3.9%-12.7%
Q2 2019+8.1%+1.9%+8.4%
Q1 2019+0.0%-0.8%-14.7%
Q4 2018-8.7%-14.0%-6.2%
Q3 2018-2.1%-6.1%-12.0%
Q2 2018+1.3%+1.1%+0.0%
Q1 2018+0.2%+2.6%+3.0%
Q4 2017-2.8%-3.4%-7.7%
Q3 2017+7.7%+16.0%+16.2%
Q2 2017-1.5%+2.3%-0.4%
Q1 2017-0.6%+3.7%+13.1%
Q4 2016-4.7%-10.2%-17.9%
Q3 2016-10.7%-11.3%+5.3%
Q2 2016-0.9%-3.2%+2.8%
Q1 2016+0.6%
Q4 2015-5.6%
Q3 2015-1.1%
Q2 2015-8.2%
Q1 2015-5.3%
Q4 2014+8.1%
Q3 2014+6.3%
Q2 2014+6.7%
Q1 2014-0.5%
Q4 2013+0.6%
Q3 2013-2.9%
Q2 2013-0.9%
Q1 2013+4.6%
Q4 2012-0.9%
Q3 2012+0.9%
Q2 2012+2.0%
Q1 2012-2.5%
Q4 2011-0.2%
Q3 2011+0.2%
Q3 2010+0.2%
Q2 2011-1.0%
Q2 2010-1.0%
Q1 2011-2.1%
Q4 2010+6.5%
Q1 2010+5.1%
Q4 2009-1.8%

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