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

Resources Connection (NASDAQ:RGP) issued its quarterly earnings results on Wednesday. The company reported ($0.07) EPS for the quarter, topping the consensus estimate of ($0.08) by $0.01, FiscalAI reports. Resources Connection had a negative net margin of 8.98% and a negative return on equity of 4.47%. The firm had revenue of $106.11 million during the quarter, compared to analyst estimates 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 $0.07 during trading hours on Friday, hitting $3.69. 179,492 shares of the company were exchanged, compared to its average volume of 451,458. The stock has a market capitalization of $126.85 million, a price-to-earnings ratio of -3.12 and a beta of 0.55. Resources Connection has a one year low of $3.06 and a one year high of $5.95. The business’s 50-day simple moving average is $4.45 and its two-hundred day simple moving average is $4.19.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of RGP. First Manhattan CO. LLC. bought a new stake in shares of Resources Connection in the 4th quarter worth approximately $3,785,000. Kennedy Capital Management LLC acquired a new stake in shares of Resources Connection in the 4th quarter worth about $3,002,000. Charles Schwab Investment Management Inc. boosted its stake in Resources Connection by 37.1% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 1,407,032 shares of the company’s stock valued at $7,091,000 after purchasing an additional 380,769 shares during the period. Ameriprise Financial Inc. boosted its position in Resources Connection by 25.5% during the 2nd quarter. Ameriprise Financial Inc. now owns 480,170 shares of the company’s stock worth $2,579,000 after acquiring an additional 97,602 shares during the period. Finally, Vanguard Group Inc. lifted its holdings in Resources Connection by 5.1% in the third quarter. Vanguard Group Inc. now owns 2,011,147 shares of the company’s stock worth $10,156,000 after purchasing an additional 97,228 shares during the period. 93.23% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

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. 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, Weiss Ratings raised shares of Resources Connection from a “sell (e+)” rating to a “sell (d-)” rating in a report on Monday, June 15th. Two analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company has a consensus rating of “Hold” and an average 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.