Resources Connection Earnings: Everything You Must Know Now
Resources Connection Inc. (NASDAQ:RECN) delivered a profit and met Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0%.
Resources Connection Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 0% to $0.11 in the quarter versus EPS of $0.11 in the year-earlier quarter.
Revenue: Decreased 3.69% to $138 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Resources Connection Inc. reported adjusted EPS income of $0.11 per share. By that measure, the company missed the mean analyst estimate of $0.11. It missed the average revenue estimate of $140.88 million.
Quoting Management: “Our third quarter revenues were negatively impacted due primarily to the wind down of a large mortgage servicing project resulting from our client’s settlement with the U.S. government and a decline in international revenues following the winter holidays,” said Tony Cherbak, President and Chief Operating Officer of RGP. “Despite the impact of the mortgage servicing project, I am pleased we grew our U.S. revenue and earnings per share quarter over quarter.”
Key Stats (on next page)…
Revenue decreased 2.27% from $141.2 million in the previous quarter. EPS decreased 21.43% from $0.14 in the previous quarter.
Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.2 and has not changed. For the current year, the average estimate has moved down from a profit of $0.6 to a profit of $0.57 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)