TransAct Technologies (NASDAQ:TACT) Posts Quarterly Earnings Results, Beats Estimates By $0.02 EPS

TransAct Technologies (NASDAQ:TACT) announced its earnings results on Thursday. The technology company reported ($0.04) EPS for the quarter, topping the consensus estimate of ($0.06) by $0.02, FiscalAI reports. TransAct Technologies had a negative net margin of 0.75% and a negative return on equity of 1.25%. The company had revenue of $14.44 million for the quarter, compared to analysts’ expectations of $13.90 million.

Here are the key takeaways from TransAct Technologies’ conference call:

• Food service technology (FST) grew strongly, with revenue up 33% year over year, recurring revenue up 24%, and software revenue up 61%. The company said its growing online terminal base and Azure-based platform support its push toward a larger recurring software business.
• Casino and gaming weakness prompted lower full-year guidance. TransAct expects softer demand to continue into the fourth quarter and now forecasts 2026 sales of $55 million–$56 million and adjusted EBITDA of $1.5 million–$1.75 million.
• Profitability weakened in the quarter: gross margin fell to 46.4% from 49.8% a year earlier, and the company recorded an operating loss of $415,000 and a net loss of $440,000.
• The board’s strategic review covers the casino and gaming business and broader alternatives, including a possible sale of FST. The company gave no timetable and said there is no assurance the review will result in a transaction.

TransAct Technologies Stock Down 1.0%

Shares of TransAct Technologies stock opened at $4.88 on Friday. TransAct Technologies has a 12-month low of $3.06 and a 12-month high of $6.02. The company has a market capitalization of $50.38 million, a price-to-earnings ratio of -122.00 and a beta of 1.25. The firm’s 50-day moving average price is $4.98 and its two-hundred day moving average price is $4.41.

Wall Street Analysts Forecast Growth

A number of equities research analysts recently issued reports on TACT shares. Weiss Ratings reissued a “sell (d-)” rating on shares of TransAct Technologies in a research report on Monday, November 2nd. Wall Street Zen upgraded TransAct Technologies to a “hold” rating in a research note on Saturday, July 18th. One equities research analyst has rated the stock with a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Reduce”.

TransAct Technologies Company Profile

TransAct Technologies Incorporated (NASDAQ:TACT) develops and manufactures transaction-based technology products for the gaming, lottery, food service and point-of-sale markets. The company’s offerings include thermal printers, kiosks, terminals and related hardware used to produce tickets, receipts, vouchers and other transaction documents. In the gaming and lottery industries, TransAct supplies printers and other equipment for slot machines, video lottery terminals, ticket-in/ticket-out systems and lottery applications.