RCM TECHNOLOGIES Reports Second Quarter FY2023 Earnings Results on June 30, 2023
August 23, 2023
🌥️Earnings Overview
On June 30 2023, RCM TECHNOLOGIES ($NASDAQ:RCMT) reported their second quarter FY2023 earnings results, ending on that date. Total revenue for the quarter was USD 67.0 million, a decrease of 9.8% from the same period in the prior year. Net income for the quarter was USD 4.0 million, a decrease of 33.8% year-on-year.
Stock Price
The company’s stock opened the day at $19.9, but closed at $19.3, down by 2.4% from its last closing price of $19.8. This decrease in stock price was attributed to the company’s reported earnings results, which failed to meet market expectations. This miss on EPS caused investors to sell off their shares and resulted in the decrease in stock price. In addition to the financial results, the company also announced a number of strategic initiatives and plans for the upcoming quarters.
It stated that it plans to invest more in digital marketing and customer experience initiatives, in order to improve its competitiveness and increase its market share. Furthermore, it also announced plans to expand its business operations into new markets and develop new products to cater to the changing customer needs. Overall, RCM TECHNOLOGIES provided mixed financial results for the quarter, but investors remain optimistic about the company’s future prospects due to its strategic plans for growth and expansion. 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
GoodWhale has conducted an analysis of the fundamentals of RCM TECHNOLOGIES. According to our Star Chart, RCM TECHNOLOGIES is strong in profitability, medium in asset, growth and weak in dividend. RCM TECHNOLOGIES has a high health score of 7/10 with regard to its cashflows and debt, showing that it is capable to pay off debt and fund future operations. Based on this analysis, we classify RCM TECHNOLOGIES as a ‘rhino’, a type of company that has achieved moderate revenue or earnings growth. Given these results, we believe that value investors and growth investors may both be interested in RCM TECHNOLOGIES. Value investors will likely be drawn to the company’s strong profitability and relatively low dividend payments. On the other hand, growth investors may be enticed by RCM TECHNOLOGY’s steady revenue or earnings growth, as well as its healthy cashflows and debt. In conclusion, we believe that RCM TECHNOLOGIES is an attractive investment opportunity for both value and growth investors. 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 in RCM TECHNOLOGIES should consider the company’s second quarter FY2023 earnings results with caution. Total revenue decreased 9.8% year-over-year, with net income dropping 33.8% in the same period. This indicates a significant downturn in performance compared to the same quarter in the previous year. While caution should be taken when considering investing in RCM TECHNOLOGIES, further research should be done in order to understand the company’s financials and make an informed decision about investing.
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