Transcat Analysts Boost Their Forecasts After Upbeat Results

Transcat, Inc. TRNS reported better-than-expected fourth-quarter financial results, after the closing bell on Monday.

Transcat posted adjusted earnings of 66 cents per share, beating market estimates of 53 cents per share. The company's quarterly sales came in at $70.913 million versus expectations of $68.595 million, according to data from Benzinga Pro.

“We are extremely pleased with our fourth quarter and full year fiscal 2024 results as double-digit organic Service revenue growth and increased productivity drove Service gross margin expansion while Distribution gross margins soared due to growth in Rentals,” commented Lee D. Rudow, President and CEO. “Adjusted EBITDA growth of 30% for the fourth quarter reflects our ability to leverage organic Service revenue growth and the successful integration of acquired companies. Fourth quarter Consolidated revenue was up 14% with gross margin expansion of 300 basis points year over year driven by our widened breadth of service offerings, excellent performance in the higher-margin rental business, and execution of automation and process improvement initiatives. Service segment revenue grew 18% in the fourth quarter as demand in highly regulated end markets, including life sciences, remained strong and our differentiated value proposition continues to resonate throughout Transcat’s expanded addressable markets.”

Transcat shares gained 2% to trade at $144.71 on Wednesday.

These analysts made changes to their price targets on Transcat after the company reported quarterly results.

• HC Wainwright & Co. boosted the price target on Transcat from $124 to $156. HC Wainwright & Co. analyst Scott Buck maintained a Buy rating.
• Oppenheimer increased Transcat price target from $125 to $160. Oppenheimer analyst Martin Yang maintained an Outperform rating.

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