Measurement equipment distributor Transcat (NASDAQ: TRNS) will be announcing earnings results this Tuesday after market close. Here’s what to expect.
Transcat beat analysts’ revenue expectations last quarter, reporting revenues of $92.95 million, up 21.6% year on year. It was an incredible quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ EBITDA estimates.
Is Transcat a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Transcat’s revenue to grow 12.4% year on year, slowing from the 21.3% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Transcat has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Transcat’s peers in the maintenance and repair distributors segment, some have already reported their Q3 results, giving us a hint as to what we can expect. WESCO delivered year-on-year revenue growth of 16.6%, beating analysts’ expectations by 5.1%, and Fastenal reported revenues up 15.5%, topping estimates by 1%. WESCO traded down 1.2% following the results while Fastenal was also down 2%.
Read our full analysis of WESCO’s results here and Fastenal’s results here.
Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the economy). While some of the maintenance and repair distributors stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3% on average over the last month. Transcat is down 4.7% during the same time and is heading into earnings with an average analyst price target of $107 (compared to the current share price of $86.34).
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