Transcat, Inc. (NASDAQ: TRNS) reported Q1 EPS of $0.68, $0.05 better than the analyst estimate of $0.63. Revenue for the quarter came in at $66.71 million versus the consensus estimate of $69.35 million.

Outlook

Mr. Rudow concluded, “We are proud of our dedicated team, which has delivered exceptional results through various economic cycles as can be seen over the past decade and a half of profitable growth. We have successfully and consistently delivered organic Service revenue growth, gross margin expansion, free cash flow, and expanded our addressable markets through acquisition. We believe our unique value proposition drives a sustainable competitive advantage in the highly regulated markets that we serve, particularly the Life Science, Aerospace, and Defense markets, along with a growing Rentals business. We expect 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. Automation of our calibration processes and overall productivity improvements will continue to be key enablers of future margin expansion. We will continue to leverage our expertise and proven track record of successful acquisitions to drive synergistic growth opportunities with a sharp focus on integration. Our robust and diverse acquisition pipeline enables strategic, accretive acquisitions that will be a key component of our go-forward strategy.”

Transcat expects its income tax rate to range between 24% and 26% in fiscal 2025. This estimate includes Federal, various state, Canadian and Irish income taxes and reflects the discrete tax accounting associated with share-based payment awards.

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