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PENNSAUKEN, N.J. - RCM Technologies , Inc. (NASDAQ:RCMT) reported fourth quarter earnings that fell short of analyst expectations, sending shares down 3% in after-hours trading. The company posted adjusted earnings per share of $0.49, missing the consensus estimate of $0.81 by $0.32.
Revenue for the quarter came in at $76.91 million, slightly above the analyst estimate of $76.27 million and up 8.3% YoY from $71.0 million in the same quarter last year. Despite the revenue beat, the significant earnings miss appears to be driving the negative market reaction.
"2024 demonstrated substantial progress as many of our strategic initiatives gained traction heading into the new year," said Bradley Vizi, Executive Chairman of RCM Technologies.
The company reported GAAP net income of $2.9 million, or $0.37 per diluted share, down from $5.3 million, or $0.65 per diluted share, in the year-ago quarter. Adjusted EBITDA fell to $6.3 million from $8.9 million in the comparable prior quarter.
For the full year 2024, RCM Technologies reported revenue of $278.4 million, an increase of 5.8% compared to $263.2 million in 2023. GAAP net income for the year was $13.3 million, or $1.68 per diluted share, down from $16.8 million, or $1.96 per diluted share, in the previous year.
Chief Financial Officer Kevin Miller expressed optimism about the company’s outlook, stating, "As we look to 2025, we believe we have forged the foundation for increased earnings power."
The 3% drop in share price following the earnings release suggests investors are focusing on the earnings miss rather than the slight revenue beat and management’s positive forward-looking statements.
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