Overview

* RCM Technologies Q3 revenue grows 16.4% yr/yr, beating analyst expectations

* Company reports GAAP net income of $2.3 mln, down from $2.7 mln last year

* Company expects record gross profit and adjusted EBITDA in fiscal Q4 2025

Outlook

* RCM Technologies expects record gross profit and adjusted EBITDA in Q4 fiscal 2025

Result Drivers

* ENGINEERING BACKLOG - Record backlog in Engineering segment as of end of October, per Executive Chairman Bradley Vizi

* HEALTHCARE MOMENTUM - Continued momentum in Healthcare segment, according to Executive Chairman Bradley Vizi

* Q4 EXPECTATIONS - Co expects highest quarterly gross profit and adjusted EBITDA in fiscal Q4 2025, per CFO Kevin Miller

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $70.29 $67.33

Revenue mln mln (2

Analysts

)

Q3 EPS $0.3

Q3 Net $2.26

Income mln

Q3 Gross $19.41

Profit mln

Q3 $3.94

Operatin mln

g Income

Q3 $3.32

Pretax mln

Profit

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the employment services peer group is "buy"

* Wall Street's median 12-month price target for R C M Technologies Inc ( RCMT ) is $31.00, about 25.6% above its November 4 closing price of $23.06

* The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)