Measurement equipment distributor Transcat (NASDAQ: TRNS) will be reporting results tomorrow after market hours. Here’s what to look for.
Transcat missed analysts’ revenue expectations by 5% last quarter, reporting revenues of $66.75 million, up 2.4% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ EBITDA estimates and a significant miss 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 7.7% year on year to $76.4 million, slowing from the 14.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.62 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 four times over the last two years.
Looking at Transcat’s peers in the maintenance and repair distributors segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Global Industrial posted flat year-on-year revenue, beating analysts’ expectations by 4.6%, and VSE Corporation reported revenues up 57.7%, falling short of estimates by 6.7%. Global Industrial traded up 15.7% following the results while VSE Corporation was also up 7.8%.
Read our full analysis of Global Industrial’s results here and VSE Corporation’s results here.
There has been positive sentiment among investors in the maintenance and repair distributors segment, with share prices up 20.4% on average over the last month. Transcat is down 1.9% during the same time and is heading into earnings with an average analyst price target of $100.15 (compared to the current share price of $82).
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