RESOURCES CONNECTION Reports Earnings for FY2023 Q4, Ending May 31 2023
July 29, 2023
🌥️Earnings Overview
On July 24, 2023, RESOURCES CONNECTION ($NASDAQ:RGP) reported their financial results for the fourth quarter of FY2023, ending May 31, 2023. Total revenue for the quarter was USD 184.4 million, representing a 15.0% decrease from the same period last year. Net income for the quarter was USD 11.8 million, a decrease of 42.7% year over year.
Share Price
RESOURCES CONNECTION reported its earnings for FY2023 Q4 on Monday, ending May 31, 2023. On the day, the stock opened at $15.8 and closed at $16.4, showing a 2.8% increase from the previous closing price of 16.0. This marked the closing of a successful quarter for the company, as they have seen an increase in profit year-over-year. The company’s performance was driven by a variety of factors, including strong demand for their services, cost containment initiatives and strategic investments in new markets. The resources and services offered by RESOURCES CONNECTION have become highly sought-after by businesses looking to optimize their operations and drive growth.
The company’s financials were further supported by their broad portfolio of products and services, including advisory services, data analytics, software development, and consulting services. Their strong performance in FY2023 Q4 was also supported by their continued focus on customer satisfaction and loyalty. The success of RESOURCES CONNECTION in FY2023 Q4 is a testament to the company’s dedication to delivering value to its customers, shareholders, and other stakeholders. With their continued focus on innovation and customer service, the company is well-positioned to 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 |
| 775.64 | 54.36 | 7.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Resources Connection. More…
| Operations | Investing | Financing |
| 81.64 | 3.94 | -71.91 |
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 |
| 532 | 117.48 | 12.38 |
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 |
| 3.3% | 27.4% | 9.4% |
| FCF Margin | ROE | ROA |
| 10.3% | 11.1% | 8.6% |
Analysis
As GoodWhale, we analyzed the fundamentals of RESOURCES CONNECTION and found that it is classified as a ‘cow’ through our Star Chart. This type of company has a track record of paying out consistent and sustainable dividends, and may be of interest to investors who are looking for reliable income. Furthermore, RESOURCES CONNECTION has a high health score of 10/10 with regard to its cashflows and debt, meaning that it is capable of paying off debt and funding future operations. Additionally, when it comes to its fundamentals RESOURCES CONNECTION is strong in asset, dividend, and profitability but weak in growth. More…
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
Investors looking at RESOURCES CONNECTION should take note of its fourth quarter earnings results for FY2023. Total revenue was USD 184.4 million, a decrease of 15.0% compared to the same period a year ago, while net income was USD 11.8 million, a decrease of 42.7% year over year. While these figures are not encouraging, investors should consider whether the company is taking steps to improve profitability, such as cost-cutting or new investments.
Additionally, investors should examine whether the company is maintaining healthy cash reserves or taking on too much debt. Lastly, it is important to consider the state of the sector and its outlook to determine if RESOURCES CONNECTION can expect to see improved results.
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