As the Q2 earnings season wraps, let’s dig into this quarter’s best and worst performers in the maintenance and repair distributors industry, including Fastenal (NASDAQ:FAST) and its peers.
Wall Street is overwhelmingly bullish on the stocks in this article, with price targets suggesting significant upside potential.
However, it’s worth remembering that analysts rarely issue sell ratings, partly because their firms often seek other business from the same companies they cover.
Measurement equipment distributor Transcat (NASDAQ:TRNS) reported revenue ahead of Wall Street’s expectations in Q2 CY2025, with sales up 14.6% year on year to $76.42 million. Its non-GAAP profit of $0.59 per share was 49% above analysts’ consensus estimates.
Small-cap stocks can be incredibly lucrative investments because their lack of analyst coverage leads to frequent mispricings.
However, these businesses (and their stock prices) often stay small because their subscale operations make it harder to expand their competitive moats.
Measurement equipment distributor Transcat (NASDAQ:TRNS) reported Q2 CY2025 results topping the market’s revenue expectations, with sales up 14.6% year on year to $76.42 million. Its non-GAAP profit of $0.59 per share was 49% above analysts’ consensus estimates.
Transcat (TRNS) beats Q1 revenue and EPS estimates with strong growth, but stock remains flat post-earnings. Acquisitions and new credit facility bolster future outlook.
Even if they go mostly unnoticed, industrial businesses are the backbone of our country. But they are at the whim of volatile macroeconomic factors that sway capital spending, like interest rates.
Wariness surrounding these influences has caused the industry to underperform the market as it was flat over the past six months while the S&P 500 climbed by 4.1%.
As the Q1 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the maintenance and repair distributors industry, including Transcat (NASDAQ:TRNS) and its peers.
"You get what you pay for" often applies to expensive stocks with best-in-class business models and execution.
While their quality can sometimes justify the premium, they typically experience elevated volatility during market downturns when expectations change.
While profitability is essential, it doesn’t guarantee long-term success.
Some companies that rest on their margins will lose ground as competition intensifies - as Jeff Bezos said, "Your margin is my opportunity".
Measurement equipment distributor Transcat (NASDAQ:TRNS) missed Wall Street’s revenue expectations in Q1 CY2025, but sales rose 8.8% year on year to $77.13 million. Its non-GAAP EPS of $0.64 per share was 3.8% above analysts’ consensus estimates.
Even if they go mostly unnoticed, industrial businesses are the backbone of our country. But they are at the whim of volatile macroeconomic factors that influence capital spending (like interest rates), and the market seems convinced that demand will slow.
Due to this bearish outlook, the industry has tumbled by 10.7% over the past six months. This drawdown was worse than the S&P 500’s 1.9% loss.
Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Global Industrial (NYSE:GIC) and the best and worst performers in the maintenance and repair distributors industry.
Shares of measurement equipment distributor Transcat (NASDAQ:TRNS) jumped 16.6% in the morning session after the company reported impressive first-quarter 2025 (fiscal Q4) results, as its revenue and EBITDA topped analysts' expectations.
Measurement equipment distributor Transcat (NASDAQ:TRNS) announced better-than-expected revenue in Q1 CY2025, with sales up 8.8% year on year to $77.13 million. Its non-GAAP profit of $0.64 per share was 3.8% above analysts’ consensus estimates.
