Categories Earnings, Other Industries

Resources Connection gains on upbeat Q1 results

Resources Connection (RECN) reported a 171% jump in earnings for the first quarter helped by strategic revenue growth and management of costs across its platform. Following the better-than-expected results, shares of the business consulting services provider soared over 9% in the after-market session.

EPS surged 157% to $0.18 per share as the company benefited from the favorable impact of the Tax Cuts and Jobs Act.

Revenue climbed 26.5% to $178.6 million. Geographically, US organic revenue rose 24.8% from last year, while European organic revenue climbed 36.5%. Asia Pacific organic revenue increased 15.9%.

Gross margin rose slightly to 38.2% from 38% last year due to lower costs in the company’s self-insured medical program. The share buybacks in the first quarter totaled about 468,000 shares for $7.5 million, with $112.5 million remaining for future common stock purchases as of August 25, 2018.

In addition, the company has completed the implementation in North America of the strategic initiatives it laid out in fiscal 2017 and is now focused on implementation in Europe and the Asia Pacific. In fiscal 2019, the company implemented a new incentive compensation program to focus on revenue generation and gross margin improvement.

The company remains focused on reducing selling, general and administrative expenses as a percent of revenue. With integration and special transformation costs largely complete, Resources Connection expects SG&A to reduce as a percentage of revenue in the coming quarters. As continuing to wind down transformation and acquisition costs over the next few quarters, the company plans to deliver more profit to the bottom line.

Shares of Resources Connection ended Wednesday’s regular session down 0.73% at $16.43 on the Nasdaq. The stock had risen by 15% for the past year and over 6% for the year so far.

Most Popular

Tyson Foods (TSN) Q1 2023 Earnings: Key financials and quarterly highlights

Tyson Foods Inc. (NYSE: TSN) reported first quarter 2023 earnings results today. Sales rose 2.5% year-over-year to $13.2 billion. Net income attributable to Tyson was $316 million, or $0.88 per

After weak start to 2023, Apple (AAPL) sees some bright spots

Apple Inc. (NASDAQ: AAPL) this week reported its first revenue decline in more than three years, even as the high inflation continues to squeeze customers’ spending power. Sales of the

Earnings: Qualcomm (QCOM) Q1 profit falls on lower revenues

Chipmaker Qualcomm, Inc. (NASDAQ: QCOM) has reported lower earnings and revenues for the first quarter of 2023. The company also provided guidance for the second quarter of 2023. At $9.5

Tags

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