Measurement equipment distributor Transcat (NASDAQ: TRNS) will be reporting earnings tomorrow afternoon. Here’s what to look for.
Transcat missed analysts’ revenue expectations by 3.5% last quarter, reporting revenues of $67.83 million, up 8% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ EBITDA and EPS estimates.
Is Transcat a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Transcat’s revenue to grow 7.9% year on year to $70.3 million, slowing from the 13.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.50 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Transcat has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Transcat’s peers in the industrial distributors segment, some have already reported their Q4 results, giving us a hint as to what we can expect. MSC Industrial’s revenues decreased 2.7% year on year, beating analysts’ expectations by 2.6%, and Fastenal reported revenues up 3.7%, falling short of estimates by 0.9%. MSC Industrial’s stock price was unchanged after the results, while Fastenal was up 1.8%.
Read our full analysis of MSC Industrial’s results here and Fastenal’s results here.
There has been positive sentiment among investors in the industrial distributors segment, with share prices up 6.3% on average over the last month. Transcat’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $121.20 (compared to the current share price of $105).
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
