Transcat jumps 20.8% after fiscal second-quarter results lift outlook

What happened

Transcat (TRNS) rose 20.8% on November 4, 2026, because fiscal second-quarter results beat estimates and the company raised its service outlook. The earnings release on November 3, 2026, showed earnings per share of $0.64 against $0.45 expected, 42.9% above estimates, and the company said demand was strong across its calibration services and distribution businesses, according to Business Wire and Seeking Alpha. For the four quarters through September 26, 2026, revenue was $363.2 million, which grew 19.3% from a year earlier, and diluted earnings per share were $0.48 for the period.

How big was the move

The stock rose 20.8% on the day, a move that was 6.0 times a typical daily move for this stock and 20.8 percentage points better than the sector median; the Industrials sector median on the day was unchanged. Trading volume was 4.7 times its 20-day average and the stock opened 10.6% above the previous close. By comparison, the S&P 500 on the day rose 1.6% while the S&P 500 over five sessions fell 0.7%, and the stock’s change over the last five sessions rose 21.7%.

The technical picture

The stock was trading 25.4% above its 20-day moving average and 25.0% above its 50-day moving average, with the stock 31.6% above its 200-day moving average. The 50-day average was above the 200-day average, a sign of an established uptrend, and the stock had been above the 200-day average for 13 consecutive trading days. The Relative Strength Index (14 days) was 76, above 70, a level often called overbought, and the stock was 2.1% below the 52-week high. Over one month the stock rose 20.4%; over three months it rose 14.4%; and over one year it rose 53.1%, which was 40.9 percentage points ahead of the S&P 500.

Fundamentals and valuation

On a trailing four-quarter basis ending September 26, 2026, revenue was $363.2 million and revenue growth from a year earlier grew 19.3%. Gross margin was 32.8% (a year earlier: 32.8%), while operating margin compressed to 3.5% from 6.9% a year earlier, and free-cash-flow margin was 6.3%. Return on invested capital was 1.4% and the balance sheet showed net debt of 4.1 times EBITDA; share count over one year increased by 1.6%.

The stock trades at 225.3 times trailing earnings and 57.0 times expected earnings, with a free-cash-flow yield of 2.8%. Its price to trailing earnings was higher than 95% of its own readings over the past five years (five-year median: 64.5 times earnings), indicating a valuation well above its historical norm even as growth metrics remain mixed.

Earnings and analyst expectations

The November 3, 2026, report delivered earnings per share of $0.64 against $0.45 expected, 42.9% above estimates, and marked one consecutive quarter beating estimates. The company’s fiscal second-quarter 2027 results showed revenue growth of 18% year-over-year and earnings of $0.64 per share versus $0.44 a year ago; it highlighted double-digit service organic revenue growth and meaningful expansion in service gross margin, prompting an upward revision to its full-year outlook for service organic revenue growth, according to Business Wire and Seeking Alpha. The next report is scheduled for February 2, 2027.

Average surprise over the last four reports was 5.9% below estimates, and the typical two-day reaction after recent reports was that the stock rose 1.2%. Analysts covering the stock place a consensus price target of $123.60, 14.3% above the closing price, based on the views of 10 analysts; 90% rate the stock Buy or Strong Buy and the consensus rating is Buy.

What to watch

• February 2, 2027: next scheduled earnings report
• Consensus price target $123.60, 14.3% above the closing price
• Number of analysts with a rating: 10; Share rating the stock Buy or Strong Buy: 90%
• Price to trailing earnings 225.3 times trailing earnings and free-cash-flow yield 2.8%
• Balance sheet: net debt of 4.1 times EBITDA