NASDAQ$TRNS

Transcat Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Transcat reported strong first quarter results driven by double-digit organic service growth and expanding gross margins.

Transcat reported a strong first quarter with a 10.9% increase in consolidated revenue and a 160 basis points expansion in gross margin. Service revenue grew by 17.6%, with organic service revenue growth of 11.2%. Adjusted EBITDA increased by 16%.

  • Consolidated revenue increased by 10.9% due to growth in both service and distribution segments.
  • Service revenue grew by 17.6%, with organic growth of 11.2%, driven by strong demand in regulated end markets.
  • Distribution segment gross margin improved by 270 basis points to 27.7% due to strength in the rental business.
  • Adjusted EBITDA increased by 16.1% due to successful execution of automation and process improvement initiatives.

Headline financials

Total Revenue

$60.6M

Previous: $54.7M+10.9%
EPS (adj)

$0.52

Previous: $0.54-3.7%
Gross Margin

30.8%

No prior period
Distribution Gross Margin

27.7%

No prior period
Leverage Ratio

1.5

Previous: 1.83-18.0%
Capital Expenditures

-$2.77M

Previous: -$2.4M-15.3%
Free Cash Flow

$4.77M

Previous: -$356K+1439.6%
Net Income

$2.95M

Previous: $3.07M-4.0%
Operating Income

$4.64M

Previous: $3.6M+28.7%
Gross Profit

$18.7M

Previous: $16M+16.7%
Cash & Equivalents

$2.15M

Previous: $443K+385.1%
Total Assets

$203M

Previous: $182M+11.7%
Stock-Based Comp

$930K

Previous: $828K+12.3%

Revenue & EPS history

Transcat · Revenue · Quarterly

$60.6M

Q1 2024+10.9%vs Q1 2023
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Transcat · $60.6M total across 2 segments · Q1 2024

  • Service
    $39.9M+17.7%
  • Distribution
    $20.7M

Forward guidance

Transcat anticipates organic Service revenue growth in the high-single digit to low double-digit range and gross margin expansion during the fiscal year 2024.

Tailwinds

  • Expect organic Service revenue growth in the high-single digit to low double-digit range.
  • Anticipate gross margin expansion.
  • Unique value proposition drives a sustainable competitive advantage.
  • Strategic, accretive acquisitions drive synergistic growth opportunities.
  • Believe the company's value proposition drives a sustainable competitive advantage in the highly regulated markets.

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 Q1 2024

Historical avgQ1 2024

+0.8%

Avg return

Earnings day

+2.4%

Avg return

5 days after

+3.7%

Avg return

30 days after

58%

37 / 64 earnings

Positive

+16.9%

Q4 2013

Best reaction

-17.0%

Q2 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026
Q3 2026+8.9%+26.0%+11.6%
Q2 2026-11.5%-21.6%-24.3%
Q1 2026+2.7%+6.6%+0.3%
Q4 2025+15.7%+12.5%-0.1%
Q3 2025-12.7%-22.3%-18.5%
Q2 2025-17.0%-20.3%-12.3%
Q1 2025-16.5%-23.1%-13.8%
Q4 2024+15.2%+9.3%-1.5%
Q3 2024+10.9%+15.1%+5.7%
Q2 2024-1.6%-5.4%+7.6%
Q1 2024+4.5%+7.4%+22.7%
Q4 2023+4.8%+1.5%+3.4%
Q3 2023+2.6%+6.7%+9.4%
Q2 2023-12.2%-9.8%-2.6%
Q1 2023+8.8%+16.6%+18.9%
Q4 2022-2.8%-0.1%-6.8%
Q3 2022-12.9%-21.3%-17.6%
Q2 2022+11.4%+18.8%+18.7%
Q1 2022+4.0%+5.3%+9.9%
Q4 2021+15.8%+17.9%+14.0%
Q3 2021+8.7%+14.7%+21.3%
Q2 2021+8.5%+12.4%+14.8%
Q1 2021+1.9%+8.5%+11.2%
Q4 2020+0.4%-6.7%-9.2%
Q3 2020+0.4%+5.2%+0.5%
Q2 2020+9.5%+12.6%+20.2%
Q1 2020-1.1%-1.8%-6.8%
Q4 2019+4.5%+3.7%+8.8%
Q3 2019+1.1%+2.7%-0.3%
Q2 2019+2.4%+1.5%+0.5%
Q1 2019-4.6%-0.9%+6.8%
Q4 2018+4.9%+6.5%+21.9%
Q3 2018+8.6%+8.2%+7.9%
Q2 2018-1.5%-2.7%+0.6%
Q1 2018-0.4%+0.0%-1.9%
Q4 2017-4.5%-2.8%-3.2%
Q3 2017+10.3%+4.3%+10.2%
Q2 2017+2.3%+2.7%+6.2%
Q1 2017+1.0%+4.2%+9.5%
Q4 2016-6.9%
Q3 2016-1.3%
Q2 2016-4.5%
Q1 2016+2.1%
Q4 2015+1.5%
Q3 2015-3.0%
Q2 2015+4.5%
Q1 2015-8.9%
Q4 2014-3.0%
Q3 2014-8.1%
Q2 2014-3.9%
Q1 2014+5.9%
Q4 2013+16.9%
Q3 2013+7.8%
Q2 2013-1.7%
Q1 2013-0.8%
Q4 2010+1.9%
Q4 2012-2.7%
Q3 2011-7.7%
Q3 2012+1.0%
Q2 2012+0.0%
Q1 2011+1.1%
Q2 2011+1.1%
Q4 2011+1.1%
Q1 2012-10.1%

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