RCM Technologies $RCMT stock has formed a candle over candle turn in early trading on August 15, 2022, after receiving a Buy rating from B. Riley Securities.
B. Riley upgrades RCM Technologies to Buy, sees nearly 70% upside
On August 15, 2022, B. Riley analyst Alex Rygiel upgraded RCM Technologies to Buy from Neutral with a $23 price target, noting that this represents a nearly 70% upside. Recent weakness is unwarranted but reflects some degree of risk and volatility from retail investors, said Rygiel, who notes that RCM’s Q2 adjusted EBITDA and EPS were both ahead of his estimates.
RCM Technologies, Inc. is a national provider of Business, Technology, and resource solutions in information technology and professional engineering to customers in corporate and government sectors. The company has grown its information technology competencies in resource augmentation, e-business, Enterprise Resource Planning support, network and infrastructure support, and knowledge management. RCM’s engineering expertise includes technical design, field engineering, field support, procedures development, and project and program management.
RCM Technologies, Inc. Announces Second-Quarter Results
On August 10, 2022, RCM Technologies, Inc. (NasdaqGM: RCMT), a premier provider of business and technology solutions designed to enhance and maximize the operational performance of its customers through the adaptation and deployment of advanced engineering, specialty health care, and information technology services, announced financial results for the thirteen and twenty-six weeks ended July 2, 2022.
RCM Technologies reported revenueThe income statement provides a summary of a company's revenue and expenses over a specified period of time, typically a year or a quarter. It shows the company's total revenue, th... of $74.3 million for the thirteen weeks ended July 2, 2022 (the current period), an increase of 51.9% compared to $48.9 million for the thirteen weeks ended July 3, 2021 (the comparable prior-year period). Gross profit was $21.7 million for the current period, a 76.8% increase compared to $12.3 million for the prior year. The company experienced a GAAP operating income of $8.2 million for the current period compared to $1.9 million for the prior year. The company experienced GAAP net income of $6.0 million, or $0.57 per diluted share, for the current period compared to $1.3 million, or $0.11 per diluted share, for the comparable prior-year period. The company experienced adjusted EBITDA of $8.4 million for the current period compared to $2.2 million for the prior year.
RCM Technologies reported revenue of $156.3 million for the twenty-six weeks ended July 2, 2022 (the current period), an increase of 67.2% compared to $93.5 million for the twenty-six weeks ended July 3, 2021 (the comparable prior-year period). Gross profit was $45.1 million for the current period, a 95.1% increase compared to $23.1 million for the prior year. The company experienced a GAAP operating income of $17.2 million for the current period compared to $3.3 million for the prior year. The company experienced a GAAP net income of $12.5 million, or $1.18 per diluted share, for the current period compared to $2.3 million, or $0.19 per diluted share, for the prior year. The company experienced an adjusted EBITDA of $17.7 million for the current period compared to $3.9 million for the preceding year.
Bradley Vizi, Executive Chairman of RCM Technologies, commented, “I am pleased to announce strong performance throughout the company as we continue to make progress against our long-term strategy. Each unit demonstrated strong execution and performed well in our primarily recession-resistant end markets as demonstrated by year-over-year second-quarter increases of 281% for adjusted EBITDA and 418% for diluted EPS.”
Kevin Miller, Chief Financial Officer of RCM Technologies, commented, “After considering seasonal school closures, our second quarter revenue was consistent with trends experienced in our record-setting first quarter. In addition, we generated an operating cash flowThe cash flow statement provides a detailed overview of the cash inflows and outflows of a company over a specified period of time. It includes cash received from operations, inves... of $18.3 million in the second quarter and $20.8 million year-to-date. We anticipate we will continue to see strong results for the balance of fiscal 2022, and now intend to focus on delivering robust growth in fiscal 2023.”
RCM Technologies $RCMT Chart Technical Analysis
RCM Technologies $RCMT stock has a technical weak uptrend rating. The stock is not overbought. The recent drop in stock price has pushed the P/E down to 9.