Transcat, Inc. (NASDAQ: TRNS) reported Q3 EPS of $0.23, $0.04 better than the analyst estimate of $0.19. Revenue for the quarter came in at $44.06 million versus the consensus estimate of $42.67 million.

• Total revenue of $44.1 million up 2% from prior-year period in an environment that continues to be impacted by the COVID-19 pandemic
• Service segment organic revenue growth of 5.9%; Total Service revenue up 12.2%
• Service segment gross margin expanded 590 basis points to 27.9%

“In an environment that continues to be significantly impacted by the COVID-19 pandemic, our third quarter results demonstrated the resiliency of our business and effectiveness of our strategy as we delivered better than expected results,” commented Lee D. Rudow, President and CEO. “Our Service segment delivered another excellent quarter, growing revenue 12.2% and increasing gross margin by

590 basis points from the prior-year period. We were certainly encouraged by organic growth of 5.9% as our strategy to capture opportunities in highly-regulated end markets, including Life Sciences, continues to serve us well. Our gross margin improvement was driven by technician productivity, expense reductions, operating leverage on our fixed costs and the strong performance of pipettes.com.”

“Our Distribution segment continues to be negatively impacted by the current market environment but performed in line with our expectations. Overall, our Service segment performance drove third quarter consolidated operating income of $2.5 million, exceeding our expectations and growing 20% from prior year. Year-to-date cash flow from operations of $15.6 million was nearly double from prior year and was used, in part, to fund technology investments and our acquisition strategy”.

He added, “Our pipettes.com business continues to deliver strong results and the recent acquisition of BioTek increases our exposure to the growing pipettes market and broadens our geographic footprint. Additionally, BioTek gives us additional on-site technician capabilities, which is a perfect complement to the largely in-house technician business model at pipettes.com.”

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