Transcat, Inc. Just Beat EPS By 9.8%: Here's What Analysts Think Will Happen Next
Transcat, Inc. (NASDAQ:TRNS) just released its third-quarter report and things are looking bullish. The company beat expectations with revenues of US$65m arriving 2.3% ahead of forecasts. Statutory earnings per share (EPS) were US$0.38, 9.8% ahead of estimates. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Check out our latest analysis for Transcat
Taking into account the latest results, the consensus forecast from Transcat's five analysts is for revenues of US$281.8m in 2025. This reflects a solid 12% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to shoot up 81% to US$2.14. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$277.3m and earnings per share (EPS) of US$2.15 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 10% to US$119. It looks as though they previously had some doubts over whether the business would live up to their expectations. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. Currently, the most bullish analyst values Transcat at US$124 per share, while the most bearish prices it at US$110. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Transcat is an easy business to forecast or the the analysts are all using similar assumptions.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Transcat'shistorical trends, as the 9.8% annualised revenue growth to the end of 2025 is roughly in line with the 9.5% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 5.1% per year. So although Transcat is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Transcat going out to 2026, and you can see them free on our platform here..
Plus, you should also learn about the 3 warning signs we've spotted with Transcat .
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
