TRNS Earnings Prediction
The chart below shows how TRNS performed 10 days before and after its earnings report, based on data from the past quarters. Typically, TRNS sees a -3.35% change in stock price 10 days leading up to the earnings, and a -0.34% change 10 days following the report. On the earnings day itself, the stock moves by +0.80%. This data can give you a slight idea of what to expect for the next quarter's release.
TRNS Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
70.91M
14.25%
8.82%
Gross Margin
33.89%
9.85%
5.48%
Operating Margin
13.78%
43.99%
105.37%
Net Margin
9.72%
65.03%
89.11%
EPS
0.78
62.50%
105.26%
No Data Available
TRNS Earnings Analysis
Transcat Inc Corporation (TRNS.O) Earnings Conference Call
Positive
Revenue Increase Overview: Consolidated revenue increased by 2% to $6,680,000, driven by growth in the distribution segment, which saw a 7% rise in revenue to $2,520,000.
Strategic Acquisition Impact: The acquisition of Martin Calibration, with annual revenues exceeding $25,000,000, is expected to enhance Transcat's presence in key markets and drive service growth through combined capabilities.
Cash Flow Improvement: Operating cash flow and operating free cash flow both showed year-over-year increases, indicating improved cash generation capabilities.
Earnings Resilience Demonstrated: Adjusted diluted earnings per share was reported at $0.45, reflecting a normalization for acquisition-related costs and demonstrating resilience in earnings despite challenges.
Strong Financial Position: The company maintains a strong balance sheet with total net debt of $4,080,000 and a leverage ratio of 0.97x, providing financial flexibility for future growth initiatives.
Negative
Organic Revenue Decline: Organic service revenue declined 4% from the prior year, indicating a significant drop in demand despite a 2% increase in consolidated revenue.
Service Gross Profit Decline: Service gross profit decreased by 8% compared to the prior year, reflecting the negative impact of lower organic revenue levels despite higher technician productivity.
Net Income Decline: Net income for Q3 fell to $240,000, down $1,000,000 from the previous year, highlighting a substantial decline in profitability.
EBITDA Decline Analysis: Consolidated adjusted EBITDA dropped 13% year-over-year to $790,000, primarily due to extended holiday closures and ongoing softness in the solutions revenue.
Organic Service Revenue Outlook: The company expects organic service revenue growth to be in the low to mid single digits, which is below previous expectations and indicates ongoing challenges in the solutions channel.
TRNS FAQs
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TRNS Earning Call Sentiment
Earnings call transcript: Transcat Q4 2024 misses EPS, stock drops
TRNS.O
-4.46%Positive
The earnings call presents mixed signals. Despite organic service revenue decline and challenges in integration and order delays, there are positive aspects such as strong distribution revenue growth and a robust pipeline. The Q&A session reveals management's confidence in future improvements and no structural issues, but unclear responses on certain financial aspects raise concerns. Given the small-cap nature of the company, the stock price reaction is likely to be muted, resulting in a neutral prediction.
