Resources Connection (NASDAQ:RGP – Get Free Report) issued its earnings results on Wednesday. The company reported ($0.07) EPS for the quarter, topping analysts’ consensus estimates of ($0.08) by $0.01, FiscalAI reports. Resources Connection had a negative return on equity of 0.55% and a negative net margin of 20.16%.The firm had revenue of $106.11 million for the quarter, compared to the consensus estimate of $106.76 million.
Here are the key takeaways from Resources Connection’s conference call:
- RGP said fourth-quarter results were broadly in line with its outlook, with revenue, run-rate SG&A and gross margin all within or better than guidance. Management also said the business is entering fiscal 2027 with a more stable market backdrop.
- Fourth-quarter revenue fell to $106.1 million, down 18.3% year over year on a same-day constant-currency basis, with weakness concentrated in Europe. Consulting and On-Demand Talent both declined, while Outsourced Services held up better.
- Customer feedback was encouraging: RGP’s survey found a strong Net Promoter Score, and 95% of customers said they intend to maintain or increase their engagement. Management said clients cited trusted partnership, speed, flexibility, and quality of people as key reasons to choose RGP.
- The company is continuing to invest behind four priorities: refocusing On-Demand Talent, scaling Consulting, expanding AI capabilities, and simplifying the cost structure. Management said the planned fiscal 2027 investments are largely complete and should begin to pay off later in the year.
- RGP ended the quarter with $82.4 million in cash and no debt, and it replaced its prior credit facility with a more flexible revolving facility. Management also highlighted a balance-sheet-supported capital allocation strategy that includes dividends and opportunistic share repurchases.
Resources Connection Stock Down 1.1%
Resources Connection stock traded down $0.05 during trading on Wednesday, reaching $4.61. The stock had a trading volume of 633,111 shares, compared to its average volume of 442,653. The business has a 50 day moving average price of $4.46 and a 200 day moving average price of $4.20. Resources Connection has a 52-week low of $3.06 and a 52-week high of $5.95. The stock has a market cap of $158.26 million, a PE ratio of -1.56 and a beta of 0.55.
Resources Connection Dividend Announcement
Wall Street Analyst Weigh In
A number of equities analysts recently weighed in on the stock. Wall Street Zen upgraded shares of Resources Connection from a “sell” rating to a “hold” rating in a research report on Saturday, May 9th. Weiss Ratings raised shares of Resources Connection from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Monday, June 15th. Finally, Zacks Research raised shares of Resources Connection from a “strong sell” rating to a “hold” rating in a research note on Tuesday, June 9th. Two equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Hold” and an average target price of $7.00.
Get Our Latest Report on Resources Connection
Institutional Investors Weigh In On Resources Connection
A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Mackenzie Financial Corp boosted its stake in Resources Connection by 20.6% in the third quarter. Mackenzie Financial Corp now owns 21,134 shares of the company’s stock valued at $107,000 after acquiring an additional 3,607 shares in the last quarter. Schonfeld Strategic Advisors LLC purchased a new stake in Resources Connection in the third quarter valued at approximately $92,000. Sherbrooke Park Advisers LLC acquired a new stake in shares of Resources Connection in the third quarter valued at approximately $87,000. Mercer Global Advisors Inc. ADV purchased a new position in shares of Resources Connection during the third quarter worth approximately $85,000. Finally, Deutsche Bank AG acquired a new stake in Resources Connection during the 4th quarter worth $80,000. 93.23% of the stock is owned by hedge funds and other institutional investors.
About Resources Connection
Resources Connection, Inc (NASDAQ: RGP) is a publicly traded professional services firm that specializes in providing independent consulting and project-based teams to help organizations manage critical business challenges. Operating under the RGP brand, the company connects highly skilled consultants with clients seeking support in areas such as finance and accounting, legal and risk management, supply chain optimization, technology implementation, and digital transformation.
RGP’s consultants bring specific industry and functional expertise to engagements, working on a flexible basis that allows clients to scale resources up or down as needed.
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