Transcat, Inc. (NASDAQ: TRNS) reported Q3 EPS of $0.21, $0.06 worse than the analyst estimate of $0.27. Revenue for the quarter came in at $40.87 million versus the consensus estimate of $43.48 million.

Outlook

Mr. Rudow concluded, “We are on track and expect to close fiscal 2019 with record revenue and earnings, and expect to achieve favorable quarter-over-quarter comparisons when excluding the extra week from last year’s fourth quarter as fiscal year 2018 was a 53-week year.

“We believe we remain on target to achieve our longer-term goals for the business. We expect our technology, especially automation, and process improvement to drive productivity, increase capacity and ultimately produce higher margins. In addition, we are starting to employ the pricing analytics and optimization that helped our Distribution margins, to drive increased margins in our Service business. All of which is expected to create a strong foundation for the future and better position Transcat to both grow and withstand future macro challenges. We also believe we are doing the right things to keep and attract technical labor in a very tight labor market through a variety of recruiting, on-boarding, training and career development programs.

“Lastly, recent Service contract bookings are at record levels and our pipelines for new business and acquisitions are strong. Both of which we believe position us for a strong fourth quarter and momentum entering fiscal year 2020.”

Transcat lowered its income tax rate expectations for fiscal year 2019 to range between 24% and 25%.

The Company refined its capital expenditure expectations for the full year fiscal year 2019 to a range of $7.2 million to $7.4 million. Capital investments will be primarily focused on technology infrastructure to drive operational excellence and organic growth opportunities within both operating segments, and for rental pool assets.

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