RESOURCES CONNECTION Reports 21.9% Increase in Revenue for Q2 FY2023
January 6, 2023
Earnings report
Resources Connection Intrinsic Value – RESOURCES CONNECTION ($NASDAQ:RGP), Inc., a global professional services company, recently reported its earnings results for the second quarter of Fiscal Year 2023, ending November 30, 2022. RESOURCES CONNECTION provides professional services in the areas of finance and accounting, technology and analytics, legal and risk management, and strategic consulting. This quarter saw a 21.9% increase in total revenue, amounting to USD 17.4 million. Net income for the quarter was USD 200.4 million, an increase of 0.1% from the same period last year. The increase in total revenue can be attributed to RESOURCES CONNECTION’s ability to expand their customer base and develop strong relationships with existing customers.
The company’s strategic focus on developing innovative solutions that enhance customer experience has enabled them to increase their market share and gain new clients. Furthermore, RESOURCES CONNECTION has also been able to retain its existing customers by delivering high-quality services in a timely and cost-effective manner. RESOURCES CONNECTION’s strong performance in the second quarter of FY2023 is an indication of its continued commitment to providing excellent customer service and value-added solutions that enable their customers to create long-term value. The company’s outlook for the rest of FY2023 is positive, and they are confident that they will continue to build on their success and deliver growth in the coming quarters.
Stock Price
On Wednesday, RESOURCES CONNECTION, a consulting firm, reported a 21.9% year-over-year increase in revenue for the second quarter of FY2023. The company’s stock opened at $18.7 and closed at $18.6, up by 0.4% from its previous closing price of $18.5. The impressive performance was driven by strong demand for the company’s professional services, which include human capital management, tax and accounting, financial consulting, litigation and legal services, and technology consulting. The company’s focus on key growth areas helped it to achieve the significant increase in revenue. RESOURCES CONNECTION has seen significant growth over the past year, with a strong presence in the consulting industry. Its comprehensive range of services, combined with its expertise in delivering customized solutions to meet clients’ needs, has enabled it to gain a competitive edge in the market.
The company has also been investing heavily in technology and expanding its global reach. It has established offices in multiple countries and is actively seeking to expand its client base in new markets. This is expected to further drive growth for RESOURCES CONNECTION in the coming quarters. Overall, the impressive revenue growth reported by RESOURCES CONNECTION for Q2 FY2023 is a testament to the company’s strength and ability to deliver high-quality services to clients around the world. The company is well-positioned to capitalize on opportunities in the market and continue to grow in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Resources Connection. More…
| Total Revenues | Net Income | Net Margin |
| 826.06 | 75.52 | 9.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Resources Connection. More…
| Operations | Investing | Financing |
| 69.64 | 1.13 | -48.52 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Resources Connection. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 550.51 | 148.37 | 11.61 |
Key Ratios Snapshot
Some of the financial key ratios for Resources Connection are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 4.8% | 23.7% | 11.4% |
| FCF Margin | ROE | ROA |
| 8.3% | 15.1% | 10.7% |
VI Analysis – Resources Connection Intrinsic Value Calculator
Resources Connection is a company whose fundamentals reflect its long-term potential. Leveraging the VI app, an analysis of the company reveals an intrinsic value of around $16.9 per share. Currently, the stock is traded at $18.6, making it a fair price that is slightly overvalued by 10%. This suggests that the market has already factored in the company’s long-term potential and taken into account its current performance. As a result, investors should perform their own due diligence before investing in Resources Connection. The company’s fundamentals include its current financial performance, its competitive position in the industry, and its expected future performance. Investors should consider these factors when evaluating the company’s potential and whether or not it is a good investment. Additionally, they should also assess the company’s management team and how their strategies will impact the company’s future success. In conclusion, Resources Connection’s fundamentals appear to reflect its long-term potential. The stock is currently priced at a fair price that is slightly overvalued. Therefore, investors should perform their own due diligence before investing in Resources Connection and make sure that the fundamentals match their expectations. More…
VI Peers
In recent years, the competition between Resources Connection Inc and its competitors has intensified, as the companies have fought for market share in the highly competitive consulting industry. Link and Motivation Inc have emerged as the two largest competitors, and both have been aggressively pursuing new business opportunities. ZICO Holdings Inc and Capita PLC are also major players in the industry, and all four companies are vying for a place in the top tier of the consulting industry.
– Link and Motivation Inc ($TSE:2170)
Link and Motivation Inc is a company that provides cloud-based human capital management solutions. Its market cap as of 2022 is $93.49 billion and its ROE is 20.5%. The company offers a suite of products that helps organizations manage their employee data, including employee onboarding, performance management, and compliance.
– ZICO Holdings Inc ($SGX:40W)
Mizuho Financial Group, Inc. is a Japanese bank holding company headquartered in Tokyo, Japan. The company was founded in 2000 and is the second-largest financial services company in Japan with over $2 trillion in assets. The company offers banking, securities, and other financial services to its customers. Mizuho has over 3,000 branches and over 60,000 employees. The company’s stock is listed on the Tokyo Stock Exchange and the New York Stock Exchange.
– Capita PLC ($LSE:CPI)
Capita PLC is a provider of outsourcing and professional services to the public and private sectors in the United Kingdom. It has a market cap of 429.49M as of 2022 and a Return on Equity of 14.08%. The company offers a range of services including IT, HR, marketing, customer contact, and property management.
Summary
RESOURCES CONNECTION reported strong financial results for the second quarter of FY2023, with total revenue increasing by 21.9% compared to the same period the previous year. Net income also increased by a marginal 0.1%. This demonstrates the company’s ability to remain profitable and continue to expand despite economic challenges. Investors may find RESOURCES CONNECTION an attractive option, given its consistent growth and solid financial performance. The company has consistently reported increasing revenues and profits, indicating that it has been able to withstand economic headwinds and maintain its competitive advantage.
Additionally, the company’s share price has been steadily increasing, suggesting that investors may be viewing it as a reliable stock for long-term growth. Overall, RESOURCES CONNECTION appears to be a solid investment option, with its consistent financial performance and increasing share price. Investors may find it attractive due to its ability to maintain profitability and grow despite economic challenges.
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