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Jul 01, 2023

RCM Technologies Q2 2023 Earnings Report

RCM Technologies reported a decrease in revenue and net income for the second quarter of 2023.

Key Takeaways

RCM Technologies reported a decrease in revenue by 9.8% and a decrease in net income to $4.0 million for the thirteen weeks ended July 1, 2023. Despite a slow start to the year in Engineering, the company maintained its strategy of building a differentiated platform and anticipates a healthy double-digit earnings increase in the fourth quarter.

Revenue decreased by 9.8% compared to the prior-year period.

Gross profit decreased by 13.5% compared to the prior-year period.

GAAP net income decreased to $4.0 million, or $0.47 per diluted share.

The company anticipates a healthy double-digit earnings increase in the fourth quarter.

Total Revenue
$67M
Previous year: $74.3M
-9.8%
EPS
$0.47
Previous year: $0.57
-17.5%
Gross Profit
$18.8M
Previous year: $21.7M
-13.5%
Cash and Equivalents
$1.27M
Previous year: $3.11M
-59.1%
Free Cash Flow
$17.1M
Previous year: $18.1M
-5.4%
Total Assets
$106M
Previous year: $72.4M
+45.7%

RCM Technologies

RCM Technologies

RCM Technologies Revenue by Segment

Forward Guidance

Company believes they are set up for a healthy double-digit earnings increase in the fourth quarter, consistent with their long-term trajectory. Also, they expect to continue to see strong cash flow from operations during the second half of fiscal 2023.

Positive Outlook

  • Set up for a healthy double-digit earnings increase in the fourth quarter
  • Consistent with long-term trajectory
  • Expect to continue to see strong cash flow from operations during the second half of fiscal 2023

Revenue & Expenses

Visualization of income flow from segment revenue to net income