Transcat Q1 revenue rises 22%, driven by service growth

Transcat expects fiscal 2027 service organic revenue growth in the high single digits.

The company also anticipates service gross margin expansion in fiscal 2027, assuming stable economic conditions.

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell".

The average consensus recommendation for the business support services peer group is "buy".

Wall Street's median 12-month price target for Transcat Inc is $104.00, about 16.1% above its August 3 closing price of $89.58.

The stock recently traded at 48 times the next 12-month earnings, versus a P/E of 36 three months ago.

Service segment revenue grew at a double-digit rate, with both organic and acquisition-driven increases helping overall results.

Service gross margin expanded 90 basis points, which the company attributed to operating leverage and improved business processes.

Distribution segment revenue grew 11% on continued strength in rentals and product sales.

Transcat said fiscal first-quarter revenue rose 22% year over year, driven by service growth.

Adjusted EPS and adjusted EBITDA for fiscal Q1 beat analyst expectations.