Test measurement firm Transcat's Q1 revenue, adjusted EPS beats expectations
Overview
Transcat fiscal Q1 revenue grows 14.6% yr/yr to $76.4 mln, misses expectations
Adjusted EPS of $0.59 beats analyst estimates, per LSEG data
Adjusted EBITDA rises 15.2% to $11.8 mln, exceeding expectations, per LSEG data
Outlook
Transcat expects high single-digit service revenue growth in H2 fiscal 2026
Company anticipates continued service revenue growth in fiscal 2026
Result Drivers
SERVICE REVENUE GROWTH - Service revenue increased 12% to $49.1 mln, driven by acquisitions
DISTRIBUTION SEGMENT - Distribution revenue grew 19% to $27.3 mln, boosted by strong rentals demand
ACQUISITION STRATEGY - Acquisition of Essco Calibration Laboratory added $22 mln in annual revenue
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q1 Revenue | Miss | $76.42 mln | $73.30 mln (5 Analysts) |
Q1 Adjusted EPS | Beat | $0.59 | $0.4 (5 Analysts) |
Q1 EPS | $0.35 | ||
Q1 Adjusted EBITDA | Beat | $11.80 mln | $9.85 mln (5 Analysts) |
Q1 Gross Profit | $25.80 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the electronic equipment & parts peer group is "buy"
Wall Street's median 12-month price target for Transcat Inc is $105.00, about 28% above its August 5 closing price of $75.64
The stock recently traded at 38 times the next 12-month earnings vs. a P/E of 53 three months ago
Press Release:
