NASDAQ$RCMT

RCM Technologies Inc · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

RCM Technologies reported a decrease in revenue and experienced a net loss for Q3 2020.

RCM Technologies reported a decrease in revenue of 21.6% compared to the same period last year, with revenue totaling $31.6 million. The company experienced a GAAP operating loss of $0.2 million and a net loss of $0.2 million, or $0.02 per diluted share. However, the company generated $6.0 million in cash flow from operations and reduced net debt by 62% since December 2019.

  • Revenue decreased by 21.6% to $31.6 million compared to the prior year period.
  • GAAP operating loss was $0.2 million, compared to an operating income of $0.7 million in the prior year period.
  • GAAP net loss was $0.2 million, or $0.02 per diluted share, compared to a net income of $0.3 million, or $0.03 per diluted share, in the prior year period.
  • Generated $6.0 million in cash flow from operations and reduced net debt by 62% since December 2019.

Headline financials

Total Revenue

$31.6M

Previous: $40.3M-21.6%
EPS (adj)

-$0.02

Previous: $0.03-166.7%
Adjusted EBITDA

$214K

No prior period
Capital Expenditures

-$400K

Previous: -$301K-32.9%
Free Cash Flow

-$644K

Previous: $34K-1994.1%
Net Income

-$244K

Previous: $335K-172.8%
Operating Income

-$158K

Previous: $731K-121.6%
Gross Profit

$8.82M

Previous: $10.6M-16.9%
Cash & Equivalents

$757K

Previous: $393K+92.6%
Total Assets

$62.6M

Previous: $91.7M-31.8%
Stock-Based Comp

$147K

No prior period

Revenue & EPS history

RCM Technologies · Revenue · Quarterly

$31.6M

Q3 2020-21.6%vs Q3 2019
Beat estimate in 6 of 16 quarters(38%)
ActualEstimate

Revenue by segment

RCM Technologies · $24.1M total across 2 segments · Q3 2020

  • Engineering
    $15.1M
  • Specialty Healthcare
    $9.02M

Forward guidance

RCM Technologies is looking forward to delivering sequentially better results in the fourth quarter of 2020 and will continue to focus on further improvement as they head into 2021.

Tailwinds

  • Optimizing SGA costs
  • Focusing on gross margin
  • Achieved positive EBITDA in Q3
  • Looking forward to delivering sequentially better results in Q4 2020
  • Focusing on further improvement as they head into 2021

Headwinds

  • Obvious headwinds
  • Revenue decreased by 21.6%
  • GAAP operating loss was $0.2 million
  • GAAP net loss was $0.2 million
  • COVID-19 pandemic impact

Historical earnings impact

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

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

-0.2%

Avg return

Earnings day

+2.6%

Avg return

5 days after

+8.2%

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
Q1 2026-0.6%-23.2%
Q4 2025+4.3%+44.6%+61.5%
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 2010-1.0%
Q2 2011-1.0%
Q1 2011-2.1%
Q4 2010+6.5%
Q1 2010+5.1%
Q4 2009-1.8%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro