RCM TECHNOLOGIES Reports Profitable Second Quarter of FY2023
August 16, 2023
☀️Earnings Overview
RCM TECHNOLOGIES ($NASDAQ:RCMT) has announced the financial results for the second quarter of FY2023, which concluded on June 30 2023. Total revenue for the quarter was USD 67.0 million, representing a 9.8% decrease compared to the same period in the previous year. Net income reported for the quarter was USD 4.0 million, which is a 33.8% decrease from the same period in the preceding year.
Share Price
The company’s stock opened at $19.9 and closed at $19.3, down by 2.4% from the previous closing price of $19.8. Despite the daily stock decline, the company reported strong earnings and a rise in revenue compared to the same quarter of the previous year. The company also announced plans to expand its product portfolio and boost sales by launching several new products over the next quarter.
Additionally, RCM TECHNOLOGIES intends to increase its marketing efforts to reach more customers and increase its customer base. Investors have high hopes that the company will continue to succeed in its endeavors and grow its value in the coming months. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Rcm Technologies. More…
| Total Revenues | Net Income | Net Margin |
| 262.53 | 16.18 | 6.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Rcm Technologies. More…
| Operations | Investing | Financing |
| 24.04 | -4.93 | -21.17 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Rcm Technologies. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 105.54 | 85.36 | 2.54 |
Key Ratios Snapshot
Some of the financial key ratios for Rcm Technologies are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 16.4% | 117.4% | 8.7% |
| FCF Margin | ROE | ROA |
| 8.8% | 58.8% | 13.6% |
Analysis
At GoodWhale, we recently conducted an analysis of RCM TECHNOLOGIES and determined that it is a high risk investment in terms of financial and business aspects. Our risk rating system revealed potential red flags when examining the company’s income sheet and balance sheet. Upon closer inspection, we detected two distinct risk warnings that could be cause for concern for potential investors. To get a better understanding of these risks, we encourage those interested in RCM TECHNOLOGIES to register with us for a more in-depth analysis. At GoodWhale, we strive to provide a comprehensive assessment of potential investments – and RCM TECHNOLOGIES is no exception. By examining the financial and business fundamentals of the company, we can help you make an informed decision when it comes to investing in this particular company. Register with us today to find out more. More…
Peers
The company has a strong presence in North America, Europe, and Asia. RCM Technologies Inc’s competitors include Jangho Group Co Ltd, Calian Group Ltd, and Peoplein Ltd.
– Jangho Group Co Ltd ($SHSE:601886)
JHG is a leading investment company with a focus on the healthcare sector. The company has a market capitalization of 8.92 billion as of 2022 and a return on equity of -9.2%. JHG has a diversified portfolio of healthcare investments, including hospitals, clinics, and nursing homes. The company also has a significant presence in the pharmaceutical and biotechnology industries.
– Calian Group Ltd ($TSX:CGY)
Calian Group Ltd is a Canadian professional services company with over 30 years of experience in the provision of health, training, and technology solutions. The company has a market cap of 648.65M as of 2022 and a Return on Equity of 4.41%. Calian employs over 2,600 people in Canada, the United States, and the United Kingdom. The company’s health solutions include primary care, health promotion, and disease prevention services. Calian’s training solutions include online and classroom training, as well as simulation-based training. The company’s technology solutions include systems engineering, software development, and network integration services.
– Peoplein Ltd ($ASX:PPE)
As of 2022, Peoplein Ltd has a market cap of 310.55M and a Return on Equity of 13.79%. The company is a provider of human resources solutions and services.
Summary
Investors should take a cautious view of RCM Technologies as the company reported a decrease in total revenue and net income for the second quarter of FY2023. Total revenue was USD 67.0 million, a drop of 9.8% year-on-year. Net income decreased 33.8% to USD 4.0 million in the same period.
Overall, these results suggest that there could be further downside risks to the stock in the near future. Investors should conduct further research on the company before making investing decisions.
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