Categories Earnings, Other Industries

Earnings: Resources Connection stock tanks after Q3 results miss estimates

Business consulting firm Resources Connection (RECN) Wednesday reported higher profit and revenues for the third quarter. However, the results missed Wall Street estimates and the company’s stock dropped about 10% during the after-hours session. The company said Tim Brackney has been named the new president and chief operating officer.

The Irvine, California-based company reported a net profit of $5.8 million or $0.18 per share for the February quarter, up from $4.6 million or $0.14 per share recorded in the same period of last year.  Adjusted earnings more than doubled to $0.20 per share but came in below the forecast as the growth was restricted by a sharp increase in income tax provision.

Selling, general and administrative expenses, as a percentage of revenue, improved by 110 basis points compared to the year-ago quarter. Benefitting from the management’s aggressive go-to-market strategies, revenues moved up 4.1% to $179.5 million. However, the top-line fell short of expectations. A 9.7% fall in revenues in Europe was more than offset by a 6% growth in the domestic market and a 4% gain in the Asia Pacific.

Adjusted earnings came in below the forecast during the quarter as growth was restricted by a sharply higher income tax provision

“We continue to make good progress in improving our top and bottom line results. While Europe has faced macro headwinds, our business in North America and Asia Pacific delivered growth in the quarter and have performed well cumulatively through the first three quarters of the fiscal year,” said CEO Kate Duchene.

Related: Resources Connection Q2 earnings beat estimates

During the quarter, the management sanctioned a $0.13 per share dividend, which was paid to shareholders in March. In addition, 559,000 shares were repurchased during the three-month period for $9.2 million.

Resources Connection also announced the appointment of Tim Brackney as its president and chief operating officer. Most recently, Brackney served as president of the company’s North American operations.

Shares of Resources Connection gained around 24% since the beginning of the year. The stock closed Wednesday’s regular trading notably higher but fell sharply during the extended session.

Follow our Google News edition to get the latest stock market, earnings, and financial news at your fingertips

Most Popular

AVGO Earnings: All you need to know about Broadcom Q1 2021 earnings results

Broadcom Limited (NASDAQ: AVGO) reported first quarter 2021 earnings results today. Total revenue increased 14% year-over-year to $6.65 billion. GAAP net income was $1.3 billion, or $3.05 per share, compared

Infographic: Costco (COST) Q2 2021 sales up 15%; earnings miss

Retail giant Costco Wholesale Corporation (NASDAQ: COST) reported higher earnings and revenues for the second quarter of 2021. Earnings missed analysts’ expectations, while sales beat. Net profit was $951 million

Will shifting to as-a-service model help Hewlett Packard in emerging stronger from COVID?

With the corporate world rapidly shifting to cloud-native computing after the virus outbreak changed work culture and the way businesses operate, technology providers are aggressively innovating their offerings. Hewlett Packard

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top