Resources Connection (NASDAQ:RGP) Posts Earnings Results, Beats Expectations By $0.01 EPS

Resources Connection (NASDAQ:RGP) released its quarterly earnings results on Wednesday. The company reported ($0.07) earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.08) by $0.01, FiscalAI reports. Resources Connection had a negative net margin of 20.16% and a negative return on equity of 0.55%. The business had revenue of $106.11 million for the quarter, compared to the consensus estimate of $106.76 million.

Here are the key takeaways from Resources Connection’s conference call:

• RGP said fourth-quarter results were broadly in line with its outlook, with revenue, run-rate SG&A and gross margin all within or better than guidance. Management also said the business is entering fiscal 2027 with a more stable market backdrop.
• Fourth-quarter revenue fell to $106.1 million, down 18.3% year over year on a same-day constant-currency basis, with weakness concentrated in Europe. Consulting and On-Demand Talent both declined, while Outsourced Services held up better.
• Customer feedback was encouraging: RGP’s survey found a strong Net Promoter Score, and 95% of customers said they intend to maintain or increase their engagement. Management said clients cited trusted partnership, speed, flexibility, and quality of people as key reasons to choose RGP.
• The company is continuing to invest behind four priorities: refocusing On-Demand Talent, scaling Consulting, expanding AI capabilities, and simplifying the cost structure. Management said the planned fiscal 2027 investments are largely complete and should begin to pay off later in the year.
• RGP ended the quarter with $82.4 million in cash and no debt, and it replaced its prior credit facility with a more flexible revolving facility. Management also highlighted a balance-sheet-supported capital allocation strategy that includes dividends and opportunistic share repurchases.

Resources Connection Trading Down 1.1%

Shares of NASDAQ RGP opened at $4.61 on Thursday. The stock has a market cap of $158.26 million, a P/E ratio of -1.56 and a beta of 0.55. The business’s fifty day simple moving average is $4.46 and its 200-day simple moving average is $4.20. Resources Connection has a 12-month low of $3.06 and a 12-month high of $5.95.

Institutional Investors Weigh In On Resources Connection

Hedge funds have recently bought and sold shares of the stock. Corient Private Wealth LLC grew its position in shares of Resources Connection by 19.7% during the fourth quarter. Corient Private Wealth LLC now owns 30,231 shares of the company’s stock worth $152,000 after buying an additional 4,969 shares in the last quarter. Mercer Global Advisors Inc. ADV raised its holdings in Resources Connection by 80.6% in the fourth quarter. Mercer Global Advisors Inc. ADV now owns 30,310 shares of the company’s stock valued at $153,000 after acquiring an additional 13,523 shares in the last quarter. Susquehanna Fundamental Investments LLC acquired a new stake in Resources Connection in the fourth quarter valued at approximately $235,000. Odyssean LLC purchased a new position in Resources Connection in the fourth quarter worth approximately $139,000. Finally, First Manhattan CO. LLC. purchased a new position in Resources Connection in the fourth quarter worth approximately $3,785,000. Institutional investors and hedge funds own 93.23% of the company’s stock.

Wall Street Analyst Weigh In

Several research firms recently weighed in on RGP. Zacks Research upgraded shares of Resources Connection from a “strong sell” rating to a “hold” rating in a report on Tuesday, June 9th. Weiss Ratings upgraded Resources Connection from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Monday, June 15th. Finally, Wall Street Zen upgraded Resources Connection from a “sell” rating to a “hold” rating in a research report on Saturday, May 9th. Two equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, Resources Connection currently has a consensus rating of “Hold” and a consensus target price of $7.00.

About Resources Connection

Resources Connection, Inc (NASDAQ: RGP) is a publicly traded professional services firm that specializes in providing independent consulting and project-based teams to help organizations manage critical business challenges. Operating under the RGP brand, the company connects highly skilled consultants with clients seeking support in areas such as finance and accounting, legal and risk management, supply chain optimization, technology implementation, and digital transformation.

RGP’s consultants bring specific industry and functional expertise to engagements, working on a flexible basis that allows clients to scale resources up or down as needed.