Group 1 - RCM Technologies, Inc. closed at $25.27, with a daily increase of +1.85%, outperforming the S&P 500's gain of 0.48% [1] - Over the last month, the company's shares increased by 9.83%, while the Business Services sector experienced a loss of 0.6% [1] - The upcoming earnings disclosure is projected to show an EPS of $0.6, a 7.14% increase year-over-year, and revenue of $78.15 million, reflecting a 13% increase [2] Group 2 - For the full year, analysts expect earnings of $2.19 per share and revenue of $313.89 million, representing increases of +7.88% and +12.76% respectively [3] - Recent revisions to analyst forecasts are important as they indicate short-term business trends, with positive revisions suggesting analyst optimism [4] - The Zacks Rank system, which evaluates estimate changes, currently ranks RCM Technologies, Inc. at 3 (Hold) [6] Group 3 - RCM Technologies, Inc. has a Forward P/E ratio of 11.33, which is lower than the industry average of 16.24 [7] - The Staffing Firms industry, part of the Business Services sector, has a Zacks Industry Rank of 185, placing it in the bottom 26% of over 250 industries [7] - The Zacks Industry Rank indicates that top-rated industries outperform the bottom half by a factor of 2 to 1 [8]

Company Overview - RCM Technologies, Inc. is a provider of solutions aimed at enhancing client performance through advanced engineering, specialty healthcare, and technology services [1][3] - The company operates in key market segments including Healthcare, Engineering, Aerospace & Defense, Process & Industrial, Life Sciences, and Data & Solutions [3] Recent Developments - RCM Technologies was added to the Russell 3000 and small-cap Russell 2000 Indexes effective June 30, 2025, marking a significant milestone in the company's history [1][2] - The addition to the Russell 2000 is seen as the beginning of a new phase for the company, aiming to contribute to global infrastructure development [2] Market Context - Russell Indexes are widely utilized by investment managers and institutional investors, with approximately $10.6 trillion in assets benchmarked against the Russell US Indexes as of June 2024 [2] - FTSE Russell, the global index provider, calculates thousands of indexes covering 98% of the investable market globally, with around $18.1 trillion benchmarked to its indexes [4]

Group 1 - The article discusses RCM Technologies, Inc. (RCMT) and references previous analysis conducted after the third-quarter 2024 results were released [1] - It highlights that Robert F. Abbott has been involved in investing since 1995 and has experience with options trading since 2010 [1] Group 2 - No relevant financial performance data or specific company metrics are provided in the documents [2][3]

Core Viewpoint - RCM Technologies, Inc. (RCMT) has been gaining attention as one of the most searched stocks, prompting analysis of factors influencing its stock performance in the near future [1]. Earnings Estimates - RCM Technologies is expected to report earnings of $0.60 per share for the current quarter, reflecting a year-over-year increase of +7.1% [5]. - The consensus earnings estimate for the current fiscal year stands at $2.19, indicating a +7.9% change from the previous year, with no changes in estimates over the last 30 days [5]. - For the next fiscal year, the consensus estimate is $2.45, suggesting an increase of +11.9% compared to the prior year, also remaining unchanged over the past month [6]. Revenue Growth - The consensus sales estimate for the current quarter is $78.15 million, representing a year-over-year growth of +13% [11]. - For the current fiscal year, the sales estimate is $313.89 million, indicating a +12.8% change, while the next fiscal year's estimate of $328.91 million reflects a +4.8% change [11]. Recent Performance - In the last reported quarter, RCM Technologies achieved revenues of $84.47 million, a year-over-year increase of +17.4%, and an EPS of $0.63 compared to $0.53 a year ago [12]. - The company surpassed the Zacks Consensus Estimate for revenues by +13.74% and for EPS by +12.5% [12]. - Over the last four quarters, RCM Technologies exceeded EPS estimates once and revenue estimates once [13]. Valuation - RCM Technologies is graded A on the Zacks Value Style Score, indicating it is trading at a discount compared to its peers [17]. - The analysis of valuation multiples such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF) is essential for determining the stock's intrinsic value and growth prospects [15][16]. Market Position - The stock has returned +0.9% over the past month, while the Zacks S&P 500 composite increased by +5.1%, and the Zacks Staffing Firms industry saw a decline of -2.8% during the same period [2]. - The Zacks Rank for RCM Technologies is 3 (Hold), suggesting it may perform in line with the broader market in the near term [7][18].

Company Performance - RCM Technologies, Inc. (RCMT) closed at $22.14, down 3.86% from the previous day, underperforming the S&P 500 which lost 0.22% [1] - The stock has increased by 1.81% over the past month, contrasting with the Business Services sector's decline of 4.75% and the S&P 500's gain of 0.45% [1] Upcoming Earnings - The company is expected to report an EPS of $0.6, reflecting a 7.14% increase from the prior-year quarter [2] - Revenue is forecasted to be $78.15 million, indicating a 13% growth compared to the same quarter last year [2] Fiscal Year Estimates - For the entire fiscal year, earnings are projected at $2.19 per share and revenue at $313.89 million, representing increases of 7.88% and 12.76% respectively from the previous year [3] Analyst Estimates - Recent changes to analyst estimates for RCM Technologies should be noted, as they reflect evolving short-term business trends [4] - Upbeat revisions in estimates suggest a favorable outlook on the company's health and profitability [4] Zacks Rank and Valuation - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently ranks RCM Technologies at 3 (Hold) [6] - The Forward P/E ratio of RCM Technologies is 10.52, which is a discount compared to the industry average Forward P/E of 15.28 [7] Industry Context - The Staffing Firms industry, part of the Business Services sector, has a Zacks Industry Rank of 209, placing it within the bottom 16% of over 250 industries [7] - The Zacks Industry Rank assesses the strength of industry groups based on the average Zacks Rank of individual stocks [8]

Group 1 - RCM Technologies, Inc. closed at $22.60, reflecting a -1.18% change from the previous day, underperforming the S&P 500's loss of 1.13% [1] - The company's stock has decreased by 1.85% over the past month, contrasting with the Business Services sector's gain of 0.81% and the S&P 500's gain of 3.55% [1] Group 2 - RCM Technologies is expected to report an EPS of $0.6, indicating a 7.14% increase from the same quarter last year, with revenue forecasted at $78.15 million, a 13% rise year-over-year [2] - For the entire fiscal year, earnings are projected at $2.19 per share and revenue at $313.89 million, representing increases of +7.88% and +12.76% respectively from the prior year [3] Group 3 - Recent modifications to analyst estimates for RCM Technologies are crucial as they reflect changing near-term business trends, with positive revisions indicating optimism about the business outlook [4] - The Zacks Rank system, which evaluates estimate changes, has a strong track record, with 1 stocks averaging a +25% annual return since 1988; RCM Technologies currently holds a Zacks Rank of 3 (Hold) [5][6] Group 4 - RCM Technologies has a Forward P/E ratio of 10.44, which is a discount compared to the industry average Forward P/E of 16.13 [7] - The Staffing Firms industry, part of the Business Services sector, is currently ranked 219 in the Zacks Industry Rank, placing it in the bottom 11% of over 250 industries [7]

Financial Data and Key Metrics Changes - Consolidated gross profit for Q1 2025 was $22 million, a 7.9% increase over Q1 2024, marking the highest gross profit in the past twelve quarters [21] - Adjusted EBITDA for Q1 2025 was $7.8 million, compared to $6.2 million for Q1 2024, reflecting a growth of 14.4% [21] - Adjusted EPS for Q1 2025 was $0.63, up from $0.53 in Q1 2024, indicating an 18.9% increase [21] Business Line Data and Key Metrics Changes - In healthcare, gross profit for Q1 2025 was $12.2 million, compared to $11.1 million in Q1 2024, growing 10.2% [21] - Engineering gross profit for Q1 2025 was $6.2 million, up from $5.5 million in Q1 2024, a growth of 12.4% [22] - In IT, life sciences, and data solutions, gross profit for Q1 2025 was $3.6 million, down from $3.8 million in Q1 2024, a decline of 5.3% [25] Market Data and Key Metrics Changes - School revenue for Q1 2025 was $37.3 million, compared to $31.9 million in Q1 2024, reflecting a growth of 16.7% [22] - Non-school revenue for Q1 2025 was $6 million, slightly down from $6.3 million in Q1 2024, but would have been $5.5 million versus $5.1 million if excluding a large long-term care group [22] Company Strategy and Development Direction - The company is focused on cultivating the next generation of leadership and enhancing operational efficiency to ensure long-term success [4] - There is a strong emphasis on revenue expansion and new client acquisition, particularly in the healthcare and engineering sectors [6][9] - The company is capitalizing on technological advancements in AI and machine learning, with a significant expansion in manufacturing across its life sciences client base [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic uncertainties, focusing on secular themes that can drive growth [30] - The outlook for the business is strong, with expectations of continued low double-digit growth in adjusted EBITDA throughout fiscal 2025 [26] - Management anticipates Q4 2025 will produce the highest adjusted EBITDA quarter for the year [26] Other Important Information - The company has retired over 300,000 shares year-to-date, bringing the total repurchase over the last five years to nearly half of shares outstanding [20] - The balance sheet remains clean with significant financial flexibility and resilient organic growth [20] Q&A Session Summary Question: Is political policy uncertainty affecting the business? - Management indicated that they have not encountered significant issues related to the macroeconomic environment and are focused on leveraging secular themes for growth [30] Question: Regarding healthcare gross margins, is the lower margin due to legacy business? - Management clarified that the lower gross margin is more of a quarterly fluctuation rather than a trend, with expectations for improvement in Q2 [32][33]

Financial Data and Key Metrics Changes - Consolidated gross profit for Q1 2025 was $22 million, a 7.9% increase over Q1 2024, marking the highest gross profit in the past twelve quarters [21] - Adjusted EBITDA for Q1 2025 was $7.8 million, compared to $6.2 million for Q1 2024, reflecting a growth of 14.4% [21] - Adjusted EPS for Q1 2025 was $0.63, up from $0.53 in Q1 2024, indicating an 18.9% increase [21] Business Line Data and Key Metrics Changes - In the healthcare segment, gross profit for Q1 2025 was $12.2 million, compared to $11.1 million in Q1 2024, a growth of 10.2% [21] - Engineering gross profit for Q1 2025 was $6.2 million, up from $5.5 million in Q1 2024, representing a 12.4% increase, marking the best engineering gross profit quarter in history [21][22] - In IT, life sciences, and data solutions, gross profit for Q1 2025 was $3.6 million, down from $3.8 million in Q1 2024, a decline of 5.3% [24] Market Data and Key Metrics Changes - School revenue for Q1 2025 was $37.3 million, compared to $31.9 million in Q1 2024, reflecting a growth of 16.7% [22] - Non-school revenue for Q1 2025 was $6 million, slightly down from $6.3 million in Q1 2024, but would have been $5.5 million versus $5.1 million if excluding a large long-term care group [22] Company Strategy and Development Direction - The company is focused on cultivating the next generation of leadership and enhancing operational efficiency through strategic investments [4][12] - There is a strong emphasis on expanding the sales team to capitalize on growth opportunities in various sectors, particularly in healthcare and life sciences [5][7] - The company aims to maintain a clean balance sheet while continuing to repurchase shares, enhancing shareholder value [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic uncertainties, focusing on secular themes that can drive growth [30][31] - The outlook for the healthcare segment remains positive, with expectations for continued growth in the upcoming school year [5][6] - The aerospace and defense sectors are anticipated to see significant growth due to new contracts and increased demand for engineering services [16][19] Other Important Information - The company has reduced net debt by $12 million to $18.2 million in Q1 2025, compared to $30.2 million in Q4 2024 [26] - The company has maintained a 90% plus renewal rate while preserving margins and bottom line strength [9] Q&A Session Summary Question: Is political policy uncertainty affecting the business? - Management indicated that they have not encountered significant issues related to the macroeconomic environment and are focused on leveraging secular themes for growth [30][31] Question: Regarding healthcare gross margins, is the lower margin due to legacy business? - Management clarified that the lower gross margin is more of a quarterly fluctuation rather than a trend, with expectations for improvement in Q2 [32][33]

Financial Performance - RCM Technologies reported revenue of $84.5 million for the thirteen weeks ended March 29, 2025, a 17.4% increase from $71.9 million in the prior year[3] - Gross profit for the current quarter was $22.0 million, reflecting a 7.9% increase compared to $20.4 million in the comparable prior quarter[3] - GAAP net income was $4.2 million, or $0.54 per diluted share, compared to $4.0 million, or $0.48 per diluted share, in the prior year[3] - Adjusted EBITDA for the current quarter was $7.8 million, up from $6.8 million in the comparable prior quarter[3] - The company experienced a gross profit margin of 26.0% for the current quarter, compared to 28.3% in the prior year[17] - Net income for the thirteen weeks ended March 29, 2025, was $4,186 million, an increase from $3,952 million in the same period of 2024, representing a growth of approximately 5.9%[21] Cash Flow and Debt Management - Cash flow from operations was $16.7 million, and net debt was reduced by $12.0 million during the quarter[4] - Net cash provided by operating activities increased significantly to $16,660 million, compared to $6,426 million in the prior year, marking a year-over-year increase of approximately 159.5%[21] - Total adjustments to reconcile net income to cash used in operating activities amounted to $12,474 million, up from $2,474 million in the previous year[21] - The company reported a net cash used in investing activities of $427 million, an improvement from $669 million in the prior year[21] - Net cash used in financing activities was $15,583 million, compared to $9,714 million in the same period last year, indicating an increase of approximately 60.5%[21] - The effect of exchange rate changes on cash and cash equivalents resulted in a decrease of $198 million, slightly better than the $228 million decrease in the previous year[21] Shareholder Equity and Stock Management - The company reduced its diluted weighted average shares outstanding from 8,170,839 to 7,741,481[10] - Stockholders' equity increased to $34.6 million from $33.5 million, reflecting a positive trend in financial health[19] - The company repurchased common stock amounting to $3,188 million during the period[21] - Retirement of common shares was recorded at $939 million, down from $1,317 million in the same period last year[21] Asset and Liability Management - Total current assets decreased from $97.0 million to $86.0 million, while total liabilities decreased from $98.6 million to $86.4 million[19] - Accounts receivable increased to $9,558 million, compared to a decrease of $2,802 million in the previous year, indicating a significant change in working capital[21] - Deferred revenue decreased to $356 million from $1,633 million in the prior year, reflecting changes in customer contracts and revenue recognition[21] Segment Performance - RCM Technologies' Life Sciences segment generated $43.3 million in revenue, while the Engineering segment contributed $32.1 million[17]

Core Viewpoint - RCM Technologies, Inc. reported strong financial results for the thirteen weeks ended March 29, 2025, with significant increases in revenue, gross profit, and net income compared to the prior year, indicating robust operational performance and effective investment strategies [2][3]. Financial Performance - Revenue for the current quarter was $84.5 million, a 17.4% increase from $71.9 million in the comparable prior quarter [2]. - Gross profit reached $22.0 million, reflecting a 7.9% increase from $20.4 million in the prior quarter [2]. - GAAP net income was $4.2 million, or $0.54 per diluted share, compared to $4.0 million, or $0.48 per diluted share, in the prior quarter [2]. - Adjusted EBITDA (non-GAAP) was $7.8 million, up from $6.8 million in the comparable prior quarter [2]. Operational Highlights - The company generated $16.7 million in cash flow from operations and reduced net debt by $12.0 million while retiring shares [3]. - The internal business metrics are strengthening, and the company is positioned well due to a thoughtful investment strategy [3]. Segment Performance - Revenue breakdown for the current quarter included $43.3 million from Life Sciences, $32.1 million from Specialty Health Care, and $9.0 million from Data and Solutions [16]. - Gross profit margins varied by segment, with Life Sciences at 28.2%, Specialty Health Care at 19.2%, and Data Solutions at 39.7% [16]. Upcoming Events - A conference call is scheduled for May 8, 2025, to discuss the financial results in detail [4].