Why Consulting Firm Resources Connection Shares Are Sliding Today?
Portfolio Pulse from Lekha Gupta
Resources Connection Inc (NASDAQ:RGP) shares fell by around 8% after the company reported Q1 FY24 results. The company reported revenue of $170.2 million, slightly beating the consensus of $170.14 million, but lower than the prior year's $204.1 million. The gross margin of 39.4% was below last year's 40.9% due to a higher pay/bill ratio and a decrease in leverage on cost of service. Adjusted EPS of $0.20 missed the street view of $0.23.
October 05, 2023 | 2:41 pm
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NEGATIVE IMPACT
Resources Connection Inc's Q1 FY24 results led to a drop in its share price. The company reported lower revenue and gross margin compared to the previous year, and its adjusted EPS missed the street view.
Resources Connection Inc's lower than expected earnings results, including a decrease in revenue and gross margin, and a missed EPS, have negatively impacted investor sentiment, leading to a drop in its share price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100