NASDAQ$TRNS

Transcat Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Transcat reported strong third quarter results driven by service gross margin expansion and adjusted EBITDA growth.

Transcat reported a consolidated revenue increase of 13.5% to $65.2 million, with a gross profit increase of 27.7% to $20.9 million. The service segment revenue grew by 15.4%, and the distribution segment sales increased by 10.4%. Adjusted EBITDA increased by 38.5% to $9.1 million, and net income per diluted share was $0.38 compared to $0.21 last year.

  • Service gross margin expanded 250 basis points versus prior year due to strong organic Service revenue growth and increased productivity.
  • Adjusted EBITDA growth of 39% reflects the ability to leverage organic Service revenue growth and successful integration of acquired companies.
  • Consolidated revenue was up 14% with gross margin expansion of 350 basis points year over year.
  • Distribution gross margin expanded 530 basis points to 31.5% on strength of Rentals.

Headline financials

Total Revenue

$65.2M

Previous: $57.4M+13.5%
EPS

$0.38

Previous: $0.35+8.6%
Adjusted EBITDA

$9.1M

No prior period
Service Gross Margin

0.0%

No prior period
Distribution Gross Margin

0.3%

No prior period
Capital Expenditures

-$9.1M

Previous: -$7.15M-27.3%
Free Cash Flow

$17.8M

Previous: $6.83M+160.6%
Net Income

$3.35M

Previous: $1.6M+109.1%
Operating Income

$4.29M

Previous: $3.16M+35.8%
Gross Profit

$20.9M

Previous: $16.4M+27.7%
Cash & Equivalents

$35.2M

Previous: $1.59M+2110.0%
Total Assets

$281M

Previous: $188M+49.1%
Stock-Based Comp

$1.17M

Previous: $815K+43.2%

Revenue & EPS history

Transcat · Revenue · Quarterly

$65.2M

Q3 2024+13.5%vs Q3 2023
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Revenue by segment

Transcat · $89.3M total across 2 segments · Q4 2026

  • Service
    $61.6M
  • Distribution
    $27.8M

Forward guidance

Transcat expects organic Service revenue growth in the high-single digit to low double-digit range and gross margin expansion for the fiscal year. Automation of calibration processes and process improvement will be key enablers to future margin expansion. The company anticipates its income tax rate to range between 24% and 26% in fiscal 2024.

Tailwinds

  • Expects organic Service revenue growth in the high-single digit to low double-digit range
  • Anticipates gross margin expansion.
  • Automation of calibration processes will enable future margin expansion.
  • Robust acquisition pipeline enables strategic, accretive acquisitions.
  • Believes its unique value proposition drives a sustainable competitive advantage.

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 2024

Historical avgQ3 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%

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