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RCM Technologies (NASDAQ:RCMT) stock has experienced a notable downturn, touching a 52-week low of $17.00 USD. According to InvestingPro analysis, the stock appears undervalued at current levels, with analysts setting a unanimous target price of $37. This latest price level reflects a significant retreat from better-performing times for the company, as investors respond to broader market pressures and company-specific headwinds. Over the past year, RCM Technologies has seen its stock value decrease by 38%, despite maintaining strong fundamentals with a P/E ratio of 8.85x and a healthy gross profit margin of 29.3%. The 52-week low serves as a critical marker for investors who track the stock’s performance, signaling a potential reassessment of the company’s valuation and future prospects. For deeper insights into RCMT’s valuation and 12 additional ProTips, check out the comprehensive research available on InvestingPro.
In other recent news, RCM Technologies reported fourth-quarter earnings that did not meet analyst expectations. The company announced adjusted earnings per share of $0.49, which was $0.32 below the consensus estimate of $0.81. However, RCM Technologies’ revenue for the quarter was $76.91 million, slightly exceeding the analyst estimate of $76.27 million and marking an 8.3% increase from the same quarter last year. Despite this revenue beat, the earnings shortfall seemed to overshadow the positive revenue figures. The company also reported a GAAP net income of $2.9 million, or $0.37 per diluted share, a decrease from $5.3 million, or $0.65 per diluted share, in the previous year. Adjusted EBITDA also declined to $6.3 million from $8.9 million in the prior year. For the full year 2024, RCM Technologies recorded revenue of $278.4 million, up 5.8% from $263.2 million in 2023, while GAAP net income was $13.3 million, or $1.68 per diluted share, down from $16.8 million, or $1.96 per diluted share, the previous year. Management expressed optimism for the future, with Chief Financial Officer Kevin Miller indicating confidence in the company’s potential for increased earnings power in 2025.
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