Resources Connection Reports Higher than Expected Earnings for First Quarter

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Resources Connection Intrinsic Value – RESOURCES CONNECTION ($NASDAQ:RGP), Inc. is a professional services firm that provides consulting, internal audit, and Sarbanes-Oxley compliance services to public and private companies. The company reported its first quarter earnings today, and the results were better than expected. On a Non-GAAP basis, RESOURCES CONNECTION earned $0. 60 per share in the first quarter. This beats the estimates of $0.

The company attributed the better-than-expected results to strong demand for its services, especially in the Sarbanes-Oxley compliance and internal audit areas. This is the second consecutive quarter that RESOURCES CONNECTION has beaten earnings estimates. The stock was up sharply in after-hours trading on the news. This is a positive development for the company, and it should continue to perform well in the quarters to come.

Stock Price

On Wednesday, RESOURCES CONNECTION stock opened at $18.4 and closed at $18.0, down by 4.1% from its last closing price of 18.7. The company reported higher than expected earnings for its first quarter, but investors were not impressed and sold off the stock. RESOURCES CONNECTION is a professional services firm that helps companies with their human resources, finance, and information technology needs. The company has been growing steadily in recent years, and its first quarter results were strong.

Despite the strong results, investors were worried about the company’s guidance for the rest of the year. RESOURCES CONNECTION said that it expects revenue to be flat in the second quarter, and earnings per share to be down slightly. This guidance was below what analysts were expecting, and it caused investors to sell off the stock.

VI Analysis – Resources Connection Intrinsic Value Calculator

The company’s fundamentals reflect its long term potential, and the intrinsic value of its shares is around $16.8, calculated by VI Line. However, the stock is currently overvalued by 7% and is not a good buy at this time.

Summary

Investors may be interested in RESOURCES CONNECTION based on the company’s report of higher than expected earnings for the first quarter. However, it is worth noting that the stock price moved down the same day. This could be due to a variety of factors, including profit-taking by investors who had purchased the stock prior to the earnings announcement, or concern about the sustainability of the company’s earnings growth.