Resources Connection, Inc. (RECN) Expected to Announce Earnings of $0.23 Per Share

Wall Street brokerages forecast that Resources Connection, Inc. (NASDAQ:RECN) will post earnings per share of $0.23 for the current fiscal quarter, according to Zacks. Two analysts have made estimates for Resources Connection’s earnings, with the highest EPS estimate coming in at $0.25 and the lowest estimate coming in at $0.21. Resources Connection reported earnings per share of $0.25 in the same quarter last year, which would indicate a negative year over year growth rate of 8%. The company is expected to announce its next quarterly earnings report on Wednesday, January 2nd.

According to Zacks, analysts expect that Resources Connection will report full-year earnings of $0.87 per share for the current year, with EPS estimates ranging from $0.82 to $0.91. For the next year, analysts expect that the business will post earnings of $0.99 per share, with EPS estimates ranging from $0.97 to $1.01. Zacks’ earnings per share averages are an average based on a survey of research firms that follow Resources Connection.

Resources Connection (NASDAQ:RECN) last posted its earnings results on Wednesday, October 3rd. The business services provider reported $0.18 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.11 by $0.07. Resources Connection had a net margin of 3.25% and a return on equity of 10.89%. The firm had revenue of $178.60 million during the quarter, compared to analysts’ expectations of $173.60 million. During the same period in the previous year, the business posted $0.12 EPS. The business’s revenue was up 26.5% compared to the same quarter last year.

A number of equities analysts have weighed in on RECN shares. BidaskClub upgraded shares of Resources Connection from a “buy” rating to a “strong-buy” rating in a research report on Wednesday, September 5th. ValuEngine cut shares of Resources Connection from a “buy” rating to a “hold” rating in a research report on Wednesday, October 3rd. Finally, Zacks Investment Research upgraded shares of Resources Connection from a “strong sell” rating to a “hold” rating in a research report on Thursday, August 9th. One investment analyst has rated the stock with a sell rating, three have given a hold rating and one has issued a strong buy rating to the stock. The stock presently has a consensus rating of “Hold” and an average price target of $18.00.

In other Resources Connection news, Director Anthony Cherbak sold 20,000 shares of the company’s stock in a transaction on Thursday, October 4th. The shares were sold at an average price of $18.59, for a total transaction of $371,800.00. Following the completion of the transaction, the director now directly owns 33,500 shares in the company, valued at $622,765. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CAO John D. Bower sold 7,500 shares of the company’s stock in a transaction on Friday, October 5th. The stock was sold at an average price of $18.93, for a total transaction of $141,975.00. Following the transaction, the chief accounting officer now owns 20,291 shares of the company’s stock, valued at $384,108.63. The disclosure for this sale can be found here. Corporate insiders own 9.80% of the company’s stock.

A number of large investors have recently bought and sold shares of the business. BlackRock Inc. raised its position in Resources Connection by 5.9% during the second quarter. BlackRock Inc. now owns 4,299,275 shares of the business services provider’s stock worth $72,657,000 after acquiring an additional 239,567 shares during the period. Dimensional Fund Advisors LP grew its holdings in shares of Resources Connection by 0.3% during the second quarter. Dimensional Fund Advisors LP now owns 2,540,337 shares of the business services provider’s stock worth $42,932,000 after buying an additional 8,244 shares in the last quarter. Bank of New York Mellon Corp grew its holdings in shares of Resources Connection by 2.8% during the third quarter. Bank of New York Mellon Corp now owns 522,076 shares of the business services provider’s stock worth $8,667,000 after buying an additional 14,299 shares in the last quarter. Northern Trust Corp grew its holdings in shares of Resources Connection by 0.8% during the second quarter. Northern Trust Corp now owns 392,222 shares of the business services provider’s stock worth $6,629,000 after buying an additional 3,104 shares in the last quarter. Finally, Deprince Race & Zollo Inc. grew its holdings in shares of Resources Connection by 40.9% during the second quarter. Deprince Race & Zollo Inc. now owns 381,409 shares of the business services provider’s stock worth $6,446,000 after buying an additional 110,687 shares in the last quarter. Institutional investors own 81.94% of the company’s stock.

Shares of RECN traded down $0.16 during trading hours on Friday, hitting $16.56. The stock had a trading volume of 1,016 shares, compared to its average volume of 194,584. The company has a debt-to-equity ratio of 0.22, a current ratio of 2.37 and a quick ratio of 2.37. The stock has a market cap of $522.98 million, a P/E ratio of 16.88 and a beta of 1.02. Resources Connection has a fifty-two week low of $13.20 and a fifty-two week high of $19.50.

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 11th. Shareholders of record on Tuesday, November 13th will be given a dividend of $0.13 per share. This represents a $0.52 dividend on an annualized basis and a yield of 3.14%. The ex-dividend date is Friday, November 9th. Resources Connection’s dividend payout ratio is presently 53.06%.

About Resources Connection

Resources Connection, Inc provides business consulting services under the Resources Global Professionals name in North America, Europe, and the Asia Pacific. The company offers process transformation and optimization, financial reporting and analysis, technical and operational accounting, and merger and acquisition due diligence and integration services; new accounting standards implementation and remediation support services; and audit readiness, and preparation and response services.

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