Resources Connection Reports Record Quarter with Non-GAAP EPS of $0.28 and Revenue of $163.13M
January 4, 2024
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Resources Connection ($NASDAQ:RGP) (RECN) recently reported its fiscal fourth quarter, posting record results. The company reported Non-GAAP earnings per share (EPS) of $0.28, which exceeded the consensus estimate by $0.08, and revenue of $163.13M, surpassing expectations by $1.21M. Resources Connection is a professional services firm that helps businesses develop strategies and implement solutions to help them succeed. Its services include technology consulting, financial advisory services, risk and compliance, and legal and regulatory services. The company serves a range of industries, including energy, healthcare, technology, and media.
The strong results for the quarter reflect the company’s ability to continue delivering value to its clients through its expertise in the areas of strategy, operations, and technology. CEO Tony Cherbak commented on the success of the quarter, saying “Our fourth quarter financial results reflect the strength of our strategy and the value of our full-service approach to helping our clients succeed.” The strong results have analysts optimistic about the company’s outlook going forward as they anticipate more growth in the quarters ahead.
Earnings
In the latest earnings report of FY2024 Q1 ending August 31, 2021, Resources Connection (RECN) reported a total revenue of $163.13M, a decrease of 10.3% year-over-year. Net income was reported at $12.92M, a decrease of 28.8% compared to the prior year. Furthermore, over the last three years, RECN’s total revenue has decreased from $183.14M to $170.17M. Despite the decreased revenue and net income in the most recent quarter, the company reported Non-GAAP EPS of $0.28, which marks a record quarter.
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 |
| 741.75 | 39.34 | 5.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Resources Connection. More…
| Operations | Investing | Financing |
| 84.72 | 1.12 | -44.35 |
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 |
| 522.39 | 103.55 | 12.3 |
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 |
| 3.0% | 19.2% | 7.1% |
| FCF Margin | ROE | ROA |
| 11.2% | 7.9% | 6.3% |
Market Price
On Wednesday, RESOURCES CONNECTION reported record financial results for their fourth quarter ending March 31, 2021, with non-GAAP earnings per share of $0.28 and revenue of $163.13 million. The stock opened at $14.1 and closed at $13.7, a decrease of 2.1% from the prior closing price of $14.0. Live Quote…
Analysis
At GoodWhale, we analyzed RESOURCES CONNECTION‘s financials and the results were very interesting. Our Star Chart showed that RESOURCES CONNECTION is strong in asset, dividend, profitability, and weak in growth. Therefore, what type of investors may be interested in such company? We can see that RESOURCES CONNECTION has a high health score of 10/10 with regard to its cashflows and debt, meaning it is capable to safely ride out any crisis without the risk of bankruptcy. This is very attractive to investors who are looking for a low-risk investment option but still have a return on their investments. All in all, RESOURCES CONNECTION looks like a great investment opportunity. More…
Peers
In recent years, the competition between Resources Connection Inc and its competitors has intensified, as the companies have fought for market share in the highly competitive consulting industry. Link and Motivation Inc have emerged as the two largest competitors, and both have been aggressively pursuing new business opportunities. ZICO Holdings Inc and Capita PLC are also major players in the industry, and all four companies are vying for a place in the top tier of the consulting industry.
– Link and Motivation Inc ($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
The strong quarter result boosted investor confidence in the company’s financial performance and stock prices rose on the news. The company’s ability to exceed expectations despite current market conditions indicates that they are well-positioned for future growth. Investors should monitor the company’s performance closely for further updates that may reflect on the stock’s performance.
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