Let’s dig into the relative performance of Transcat (NASDAQ: TRNS) and its peers as we unravel the now-completed Q3 maintenance and repair distributors earnings season.

Supply chain and inventory management are themes that grew in focus after COVID wreaked havoc on the global movement of raw materials and components. Maintenance and repair distributors that boast reliable selection and quickly deliver products to customers can benefit from this theme. While e-commerce hasn’t disrupted industrial distribution as much as consumer retail, it is still a real threat, forcing investment in omnichannel capabilities to serve customers everywhere. Additionally, maintenance and repair distributors are at the whim of economic cycles that impact the capital spending and construction projects that can juice demand.

The 9 maintenance and repair distributors stocks we track reported a satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 2%.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 11.2% since the latest earnings results.

Transcat (NASDAQ: TRNS)

Serving the pharmaceutical, industrial manufacturing, energy, and chemical process industries, Transcat (NASDAQ: TRNS) provides measurement instruments and supplies.

Transcat reported revenues of $82.27 million, up 21.3% year on year. This print exceeded analysts’ expectations by 3.5%. Overall, it was a satisfactory quarter for the company with an impressive beat of analysts’ revenue estimates but a significant miss of analysts’ EPS estimates.

"Transcat had another strong quarter of revenue and Adjusted EBITDA* performance driven by double-digit service revenue growth and continued high demand in our rentals channel,” commented Lee D. Rudow, President and CEO.

Transcat scored the fastest revenue growth of the whole group. Even though it had a relatively good quarter, the market seems discontent with the results. The stock is down 5.1% since reporting and currently trades at $52.91.

Is now the time to buy Transcat? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: VSE Corporation (NASDAQ: VSEC)

With roots dating back to 1959 and a strategic focus on extending the life of transportation assets, VSE Corporation (NASDAQ: VSEC) provides aftermarket parts distribution and maintenance, repair, and overhaul services for aircraft and vehicle fleets in commercial and government markets.

VSE Corporation reported revenues of $282.9 million, up 3.4% year on year, outperforming analysts’ expectations by 2.3%. The business had a stunning quarter with a solid beat of analysts’ EBITDA estimates.

Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 5.1% since reporting. It currently trades at $170.31.

Is now the time to buy VSE Corporation? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: Global Industrial (NYSE: GIC)

Formerly known as Systemax, Global Industrial (NYSE: GIC) distributes industrial and commercial products to businesses and institutions.

Global Industrial reported revenues of $353.6 million, up 3.3% year on year, falling short of analysts’ expectations by 1%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA and EPS estimates.

Global Industrial delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 23.8% since the results and currently trades at $26.76.

Read our full analysis of Global Industrial’s results here.

WESCO (NYSE: WCC)

Based in Pittsburgh, WESCO (NYSE: WCC) provides electrical, industrial, and communications products and augments them with services such as supply chain management.

WESCO reported revenues of $6.20 billion, up 12.9% year on year. This number beat analysts’ expectations by 4.9%. It was a very strong quarter as it also produced an impressive beat of analysts’ organic revenue estimates and a solid beat of analysts’ revenue estimates.

WESCO pulled off the biggest analyst estimates beat among its peers. The stock is up 10.6% since reporting and currently trades at $252.39.

Read our full, actionable report on WESCO here, it’s free for active Edge members.

Distribution Solutions (NASDAQ: DSGR)

Founded in 1952, Distribution Solutions (NASDAQ: DSGR) provides supply chain solutions and distributes industrial, safety, and maintenance products to various industries.

Distribution Solutions reported revenues of $518 million, up 10.7% year on year. This result surpassed analysts’ expectations by 3.3%. Taking a step back, it was a mixed quarter as it also recorded an impressive beat of analysts’ revenue estimates but a miss of analysts’ EBITDA estimates.

The stock is down 10.7% since reporting and currently trades at $26.57.

Read our full, actionable report on Distribution Solutions here, it’s free for active Edge members.

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

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