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

Resources Connection (NASDAQ:RGP) posted its quarterly earnings data on Wednesday. The company reported ($0.07) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.08) by $0.01, FiscalAI reports. Resources Connection had a negative return on equity of 0.55% and a negative net margin of 20.16%.The firm had revenue of $106.11 million during the quarter, compared to analysts’ expectations 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 Stock Performance

Shares of RGP stock traded down $0.05 on Wednesday, reaching $4.61. 633,111 shares of the company were exchanged, compared to its average volume of 442,653. Resources Connection has a 1 year low of $3.06 and a 1 year high of $5.95. The business has a 50-day moving average price of $4.46 and a 200 day moving average price of $4.20. The company has a market cap of $158.26 million, a price-to-earnings ratio of -1.56 and a beta of 0.55.

Resources Connection Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, June 19th. Stockholders of record on Thursday, May 21st were given a $0.07 dividend. The ex-dividend date was Thursday, May 21st. This represents a $0.28 annualized dividend and a dividend yield of 6.1%. Resources Connection’s dividend payout ratio (DPR) is -9.46%.

Hedge Funds Weigh In On Resources Connection

Several hedge funds and other institutional investors have recently made changes to their positions in RGP. Intesa Sanpaolo Wealth Management purchased a new stake in shares of Resources Connection during the fourth quarter worth approximately $33,000. Quarry LP boosted its stake in Resources Connection by 4,995.7% during the 3rd quarter. Quarry LP now owns 9,529 shares of the company’s stock worth $48,000 after purchasing an additional 9,342 shares during the last quarter. Strs Ohio acquired a new stake in shares of Resources Connection in the first quarter valued at about $48,000. Dynamic Technology Lab Private Ltd purchased a new position in shares of Resources Connection in the fourth quarter worth about $55,000. Finally, Boothbay Fund Management LLC acquired a new position in Resources Connection during the third quarter worth about $64,000. Hedge funds and other institutional investors own 93.23% of the company’s stock.

Analyst Upgrades and Downgrades

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