Resources Connection Full Year 2024 Earnings: Beats Expectations

Resources Connection (NASDAQ:RGP) Full Year 2024 Results

Key Financial Results

• Revenue: US$632.8m (down 18% from FY 2023).
• Net income: US$21.0m (down 61% from FY 2023).
• Profit margin: 3.3% (down from 7.0% in FY 2023). The decrease in margin was driven by lower revenue.
• EPS: US$0.63 (down from US$1.63 in FY 2023).

All figures shown in the chart above are for the trailing 12 month (TTM) period

Resources Connection Revenues and Earnings Beat Expectations

Revenue exceeded analyst estimates by 1.2%. Earnings per share (EPS) also surpassed analyst estimates by 71%.

The primary driver behind last 12 months revenue was the RGP segment contributing a total revenue of US$622.9m (98% of total revenue). Notably, cost of sales worth US$386.7m amounted to 61% of total revenue thereby underscoring the impact on earnings. The largest operating expense was General & Administrative costs, amounting to US$213.3m (95% of total expenses). Explore how RGP's revenue and expenses shape its earnings.

Looking ahead, revenue is forecast to grow 3.3% p.a. on average during the next 3 years, compared to a 5.5% growth forecast for the Professional Services industry in the US.

Performance of the American Professional Services industry.

The company's share price is broadly unchanged from a week ago.

Risk Analysis

Before you take the next step you should know about the 1 warning sign for Resources Connection that we have uncovered.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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