Transcat, Inc. (NASDAQ: TRNS) reported Q1 EPS of $0.12. Revenue for the quarter came in at $36.28 million

Outlook

Mr. Rudow concluded, “We continue to be encouraged with the prospects of both segments and the progress we have made as we advance our strategy. Our strong Service revenue growth and the addition of new capabilities necessitated the need to ramp-up the number of our lab technicians. We fully expect to see expansion in our segment margins as sales begin to flow through our new and existing calibration capabilities, and as the number, and productivity, of newly-hired technicians improves. We also expect our current investments in operational excellence initiatives to positively impact our margin profile in the long-term. Overall, we are winning more Service business and have a significant pipeline to continue to fuel our growth.

“With measured optimism, economic indicators suggest continued strength in our Distribution segment, and we are expecting our technology-based investments as well as rental and used equipment business to contribute to this segment’s overall performance.”

Transcat expects its income tax rate to range between 34% and 36% for full year fiscal 2018.

Having spent $2.1 million in the first quarter, the Company still expects capital expenditures for the full fiscal 2018 to be in the $6.0 million to $6.5 million range and to be used primarily for IT infrastructure investments to drive operational excellence, specific customer-opportunity driven Service capabilities and additional assets for the Company’s growing rental business.

For earnings history and earnings-related data on Transcat, Inc. (TRNS) click here.