NASDAQ$RCMT

RCM Technologies Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

RCM Technologies reported a decrease in revenue but an increase in net income for the fourth quarter of 2019.

RCM Technologies reported a decrease in revenue for the fourth quarter of 2019, but experienced an increase in operating income and net income compared to the same period in the previous year. The Specialty Healthcare Group performed strongly, and the Information Technology group delivered profitable growth. The company is focusing on major utilities and OEMs to drive sustainable growth in the Engineering segment.

  • Revenue decreased by 12.2% compared to the same period last year.
  • Gross profit decreased by 2.9% compared to the same period last year.
  • Operating income increased compared to the same period last year.
  • Net income increased compared to the same period last year.

Headline financials

Total Revenue

$48.6M

Previous: $55.3M-12.2%
EPS (adj)

$0.08

Previous: $0.05+60.0%
Net Debt

$32.9M

No prior period
Net Income

$1.01M

No prior period
Operating Income

$1.99M

No prior period
Gross Profit

$12.7M

No prior period
Cash & Equivalents

$1.85M

No prior period
Total Assets

$96.2M

No prior period

Revenue & EPS history

RCM Technologies · Revenue · Quarterly

$48.6M

Q4 2019-12.2%vs Q4 2018
Beat estimate in 5 of 14 quarters(36%)
ActualEstimate

Revenue by segment

RCM Technologies · $40.1M total across 2 segments · Q4 2019

  • Specialty Healthcare
    $25M
  • Engineering
    $15.1M

Forward guidance

RCM Technologies anticipates another record year in 2020 for its Specialty Healthcare Group and expects cash flow from operations to exceed $10 million in fiscal 2020. The company believes it will materially deleverage the business in 2020, especially in the first half.

Tailwinds

  • Specialty Healthcare Group is set for another record year in 2020.
  • Information Technology group delivered profitable growth in 2019.
  • Company expects cash flow from operations to exceed $10 million in fiscal 2020.
  • Company believes it will materially deleverage the business in 2020.
  • Good progress is already being made in the first quarter.

Headwinds

  • Company was disappointed with the performance of Engineering.
  • Overall revenue decreased compared to the same period last year.
  • Gross profit decreased compared to the same period last year.
  • Adjusted EBITDA decreased compared to the same period last year.
  • Forward-looking statements are subject to risks, uncertainties, and other factors.

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 Q4 2019

Historical avgQ4 2019

-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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