Transcat (NASDAQ:TRNS) Releases Earnings Results, Beats Expectations By $0.13 EPS

Transcat (NASDAQ:TRNS) released its earnings results on Tuesday. The scientific and technical instruments company reported $0.51 earnings per share for the quarter, beating analysts’ consensus estimates of $0.38 by $0.13, FiscalAI reports. Transcat had a return on equity of 5.84% and a net margin of 1.62%.The firm had revenue of $92.95 million during the quarter, compared to the consensus estimate of $86.55 million.

Here are the key takeaways from Transcat’s conference call:

• Service revenue grew 27%, including 13% organic growth, marking Transcat’s 69th consecutive quarter of year-over-year service revenue growth. Management cited broad-based demand across regulated end markets and ongoing market-share gains.
• Service gross margin expanded 90 basis points to support a 31% increase in service gross profit, while service adjusted operating income rose 35%. Management expects further benefits from operating leverage, customer relationship maturation, pricing, mix optimization, and productivity initiatives.
• Management reaffirmed expectations for high-single-digit service organic growth and service gross-margin expansion for fiscal 2027. The company also plans to continue strategic acquisitions and grow its higher-margin rental business.
• Distribution gross margin declined 380 basis points year over year to 31.4%, primarily because the prior-year period benefited from unusually high vendor rebates. Diluted EPS was $0.14, pressured by acquisition-related amortization, stock compensation, interest expense, and executive transition costs.
• Transcat ended the quarter with $110.4 million of debt, $39.6 million of revolver availability, and a 2.19x leverage ratio. Management said its capital structure supports continued organic investment and acquisitions, including additional executive and M&A capabilities.

Transcat Stock Performance

NASDAQ TRNS opened at $91.89 on Wednesday. The firm’s fifty day moving average price is $88.84 and its two-hundred day moving average price is $79.08. The stock has a market cap of $860.09 million, a PE ratio of 158.43 and a beta of 0.68. The company has a debt-to-equity ratio of 0.33, a quick ratio of 1.99 and a current ratio of 2.33. Transcat has a fifty-two week low of $50.23 and a fifty-two week high of $95.22.

Institutional Investors Weigh In On Transcat

Several hedge funds have recently modified their holdings of the company. Vanguard Group Inc. increased its holdings in Transcat by 0.4% in the 3rd quarter. Vanguard Group Inc. now owns 530,771 shares of the scientific and technical instruments company’s stock worth $38,852,000 after purchasing an additional 2,041 shares in the last quarter. Dimensional Fund Advisors LP grew its holdings in shares of Transcat by 5.4% during the fourth quarter. Dimensional Fund Advisors LP now owns 252,767 shares of the scientific and technical instruments company’s stock worth $14,340,000 after purchasing an additional 12,935 shares during the last quarter. Wellington Management Group LLP grew its holdings in shares of Transcat by 677.7% during the fourth quarter. Wellington Management Group LLP now owns 248,539 shares of the scientific and technical instruments company’s stock worth $14,100,000 after purchasing an additional 216,579 shares during the last quarter. Bamco Inc. NY increased its stake in shares of Transcat by 6.2% in the fourth quarter. Bamco Inc. NY now owns 203,477 shares of the scientific and technical instruments company’s stock valued at $11,543,000 after buying an additional 11,911 shares during the period. Finally, ArrowMark Colorado Holdings LLC raised its holdings in Transcat by 56.7% in the 4th quarter. ArrowMark Colorado Holdings LLC now owns 133,738 shares of the scientific and technical instruments company’s stock valued at $7,587,000 after buying an additional 48,367 shares during the last quarter. Institutional investors and hedge funds own 98.34% of the company’s stock.

Analysts Set New Price Targets

A number of research analysts recently commented on the company. Wall Street Zen raised shares of Transcat from a “sell” rating to a “hold” rating in a research report on Sunday, June 28th. Zacks Research raised shares of Transcat from a “strong sell” rating to a “hold” rating in a report on Friday, May 15th. Weiss Ratings upgraded shares of Transcat from a “sell (d)” rating to a “sell (d+)” rating in a research report on Thursday, May 28th. Finally, Northland Securities reaffirmed a “market perform” rating and set a $95.00 price target on shares of Transcat in a report on Wednesday. One equities research analyst has rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Transcat presently has an average rating of “Hold” and a consensus target price of $105.50.

About Transcat

Transcat, Inc (NASDAQ: TRNS) is a leading provider of calibration, laboratory, and metrology services in North America. Founded in 1964 and headquartered in Ronkonkoma, New York, the company specializes in ensuring the accuracy and compliance of measurement instruments across a wide range of industries. Transcat operates a network of ISO/IEC 17025–accredited laboratories and offers on-site field calibration, instrument repair, and preventive maintenance services.

In addition to its calibration services, Transcat distributes precision instrumentation and related software solutions from top manufacturers.