RCMT Earnings Prediction
The chart below shows how RCMT performed 10 days before and after its earnings report, based on data from the past quarters. Typically, RCMT sees a +0.16% change in stock price 10 days leading up to the earnings, and a +1.56% change 10 days following the report. On the earnings day itself, the stock moves by +0.16%. This data can give you a slight idea of what to expect for the next quarter's release.
RCMT Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
60.37M
3.99%
-12.72%
Gross Margin
28.83%
-1.50%
1.62%
Operating Margin
7.26%
-2.68%
-13.67%
Net Margin
4.55%
-29.68%
-16.36%
EPS
0.35
-23.91%
-25.53%
No Data Available
RCMT Earnings Analysis
RCM Technologies Inc Corporation (RCMT.O) Earnings Conference Call
Positive
Healthcare Revenue Growth: 1. Revenue Growth in Healthcare: School revenue grew by 16.3% in Q3 2024, increasing from $17.3 million to $20.2 million, with expectations of 20% growth for the 2024-2025 school year.
Gross Profit Increase: 2. Increased Gross Profit: Consolidated gross profit for Q3 2024 rose by 3.2% year-over-year, from $17.3 million to $17.8 million, while year-to-date gross profit increased by 5.7% from $55.1 million to $58.2 million.
Adjusted EBITDA Increase: 3. Strong Adjusted EBITDA Growth: Adjusted EBITDA for Q3 2024 grew by 9.5% from $5.1 million to $5.6 million, with year-to-date adjusted EBITDA increasing by 10.5% from $17.7 million to $19.6 million.
Client Satisfaction Success: 4. Client Retention Rate: The Life Sciences, Data & Solutions division achieved a remarkable 99% retention rate among existing clients, indicating strong satisfaction with their services.
Engineering Services Expansion: 5. Expansion in Engineering Services: The Energy Services segment is on track to exceed 2024 budgeted revenue and EBITDA numbers, supported by new major project awards in the US and Europe.
Negative
Life Sciences Profit Decline: 1. Decline in Life Sciences Segment: Life Sciences Data & Solutions gross profit decreased by 13.1% in Q3 2024 compared to the same period in 2023.
Nonschool Revenue Decline: 2. Nonschool Revenue Drop: Nonschool revenue fell from $7.6 million to $6.4 million, indicating a decline in this segment despite efforts to stabilize it.
Rising Interest Expenses: 3. Increased Interest Expense: Other expenses net for the quarter reached $620,000, primarily due to $490,000 in interest expense, which reflects rising costs associated with debt management.
Cash Flow Concerns: 4. High Days Sales Outstanding (DSO): The company reported a spike in receivables, with DSOs at least $10 million higher than expected, indicating potential cash flow issues.
New Contracts Performance: 5. Slow Start for New Contracts: Several new school contracts have started slowly, demonstrating a steepening ramp as the year progresses, which may impact future revenue growth projections.
RCMT FAQs
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RCMT Earning Call Sentiment
RCM Technologies, Inc. (RCMT) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
RCMT.O
0.3%Positive
The earnings call summary indicates strong financial performance with growth in healthcare and engineering sectors, and optimistic guidance for 2025. Despite challenges like regulatory issues and supply chain disruptions, the company maintains a competitive edge. The Q&A section reveals positive sentiment with expected school revenue growth and a potential turnaround in cash flow. Although there is no share buyback program, the overall outlook is positive with low double-digit earnings growth anticipated. The absence of a market cap suggests a moderate stock reaction, likely in the positive range of 2% to 8%.