Measurement equipment distributor Transcat (NASDAQ: TRNS) will be reporting results this Wednesday afternoon. Here’s what to look for.
Transcat beat analysts’ revenue expectations by 1% last quarter, reporting revenues of $77.13 million, up 8.8% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ 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 8.4% year on year to $72.28 million, slowing from the 10.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.40 per share.
The majority of analysts covering the company have 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 four times over the last two years.
Looking at Transcat’s peers in the maintenance and repair distributors segment, some have already reported their Q2 results, giving us a hint as to what we can expect. VSE Corporation delivered year-on-year revenue growth of 41.1%, beating analysts’ expectations by 3.4%, and Global Industrial reported revenues up 3.2%, topping estimates by 2%. VSE Corporation traded up 10.9% following the results while Global Industrial was also up 27%.
Read our full analysis of VSE Corporation’s results here and Global Industrial’s results here.
Investors in the maintenance and repair distributors segment have had steady hands going into earnings, with share prices up 1.4% on average over the last month. Transcat is down 13.4% during the same time and is heading into earnings with an average analyst price target of $99.35 (compared to the current share price of $74.80).
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