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Mar 30, 2024
Transcat Q4 2024 Earnings Report
Transcat reported double-digit organic service revenue growth and significant gross margin expansion in both segments.
Key Takeaways
Transcat reported a 14% increase in consolidated revenue driven by double-digit organic service revenue growth and margin improvements in both operating segments. Adjusted EBITDA grew by 30%, reflecting the company's ability to leverage organic service revenue growth and successful integration of acquired companies.
Consolidated revenue increased by 14.3% to $70.9 million.
Service segment revenue grew by 17.5% with organic revenue growth of 13.0%.
Distribution sales increased by 8.4% driven by strength in the Rentals business.
Consolidated gross margin expanded by 300 basis points due to margin improvements in both operating segments.
Revenue by Segment
Forward Guidance
Transcat anticipates another year of organic Service revenue growth in the high single-digit to low double-digit range when normalized for the extra week in fiscal 2024 and gross margin expansion.
Positive Outlook
- Recurring revenue streams in highly regulated end markets, including life sciences.
- Growing Rentals business that performs well throughout various economic cycles.
- Organic Service revenue growth in the high single-digit to low double-digit range when normalized for the extra week in fiscal 2024.
- Gross margin expansion.
- Automation of calibration processes and overall process improvement.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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