Measurement equipment distributor Transcat (NASDAQ:TRNS) will be announcing earnings results this Tuesday afternoon. Here’s what to expect.
Transcat missed analysts’ revenue expectations last quarter, reporting revenues of $89.33 million, up 15.8% year on year. It was a strong quarter for the company, with a solid beat of analysts’ EBITDA estimates and EPS in line with analysts’ 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 13.3% year on year, slowing from the 14.6% 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 Q2 results, giving us a hint as to what we can expect. WESCO delivered year-on-year revenue growth of 13%, beating analysts’ expectations by 3.7%, and MSC Industrial reported revenues up 7.8%, topping estimates by 1.3%. WESCO traded up 11% following the results while MSC Industrial was also up 3.2%.
Read our full analysis of WESCO’s results here and MSC Industrial’s results here.
In the last twelve months or so, the market has shifted its attention from one area of macro importance to the next (AI disintermediation and AI capex spending to geopolitical conflict, rates, and whether the economy is on solid footing or not). 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 5% on average over the last month. Transcat is down 6.8% during the same time and is heading into earnings with an average analyst price target of $101.33 (compared to the current share price of $85.37).
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