Resources Connection Earnings: Here’s Why Shares are Up Now
Resources Connection Inc. (NASDAQ:RECN) delivered a profit and missed 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 up 0.37%.
Resources Connection Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 25% to $0.09 in the quarter versus EPS of $0.12 in the year-earlier quarter.
Revenue: Decreased 3.82% to $131.7 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Resources Connection Inc. reported adjusted EPS income of $0.09 per share. By that measure, the company missed the mean analyst estimate of $0.12. It missed the average revenue estimate of $133.43 million.
Quoting Management: “Our first quarter was challenging due to cautious spending by our clients,” said Tony Cherbak, president and chief executive officer of RGP. “However, we are encouraged to see Q-2 start positively with post Labor Day average weekly revenue over $11 million as some of our clients start larger scale initiatives.”
Key Stats (on next page)…