NASDAQ$TRNS

Transcat Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Transcat reported strong revenue growth and gross margin expansion, with a 35.5% increase in adjusted EBITDA.

Transcat reported excellent second quarter results driven by broad-based revenue strength and solid operational execution across both operating segments. Consolidated revenue increased by 21.1% to $50.4 million, and adjusted EBITDA increased by 35.5% to $7.1 million.

  • Service segment revenue grew 20.3% with gross margin increasing 70 basis points to a record 32.9%.
  • Organic revenue growth was 14.0% due to strong demand in highly regulated end markets like life sciences.
  • Distribution segment revenue grew 22.2% exceeding pre-pandemic levels.
  • NEXA acquisition expands reach into asset management services, complementing core calibration offerings.

Headline financials

Total Revenue

$50.4M

Previous: $41.6M+21.1%
EPS (adj)

$0.40

Previous: $0.27+48.1%
Gross Margin

29.0%

No prior period
Adjusted EBITDA

$7.1M

Previous: $5.2M+36.5%
Service Gross Margin

32.9%

No prior period
Leverage Ratio

1.54

No prior period
Capital Expenditures

-$3.77M

Previous: -$3.12M-21.0%
Free Cash Flow

$3.73M

Previous: $9.36M-60.1%
Net Income

$3.02M

Previous: $2.02M+49.0%
Operating Income

$3.58M

Previous: $3.08M+16.2%
Gross Profit

$14.6M

Previous: $11.5M+27.1%
Cash & Equivalents

$2.55M

Previous: $962K+165.2%
Total Assets

$158M

Previous: $126M+25.6%
Stock-Based Comp

$620K

Previous: $366K+69.4%

Revenue & EPS history

Transcat · Revenue · Quarterly

$50.4M

Q2 2022+21.1%vs Q2 2021
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Transcat · $50.4M total across 2 segments · Q2 2022

  • Service
    $29.5M+20.4%
  • Distribution
    $20.9M+22.2%

Forward guidance

Transcat expects continued strong organic growth and anticipates Service total revenue growth to be similar to the second quarter, with roughly half of the growth coming organically and the other half from acquisition. Distribution revenue is expected to grow in the low teens.

Tailwinds

  • Strong balance sheet
  • Sustainable Service segment gross margins
  • Active M&A pipeline
  • Unique and enhanced value proposition
  • New customer pipeline positions us well for continued strong organic growth

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 Q2 2022

Historical avgQ2 2022

+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%

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