NASDAQ$RGP

Resources Connection Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Resources Connection's financial performance declined in Q2 2024 due to a challenging macroeconomic environment, but the company focused on strategic initiatives and delivered revenue and SG&A results towards the favorable end of outlook ranges.

Resources Connection reported a decrease in revenue to $163.1 million compared to $200.4 million in the prior year quarter. Net income also decreased to $4.9 million, with diluted earnings per share at $0.14. The company is focused on expanding consulting capabilities and improving operating efficiency.

  • Revenue decreased to $163.1 million compared to $200.4 million year-over-year.
  • Net income declined to $4.9 million, with a net income margin of 3.0%.
  • Diluted earnings per share were $0.14, down from $0.51 in the prior year quarter.
  • The company is focused on expanding consulting capabilities and improving operating efficiency in response to the uncertain macro environment.

Headline financials

Total Revenue

$163M

Previous: $200M-18.6%
EPS

$0.14

Previous: $0.59-76.3%
Effective Tax Rate

43.4%

No prior period
Consultant Headcount

3.2K

Previous: 3.3K-2.7%
Average Bill Rate

$122.00

Previous: $128.00-4.7%
Average Pay Rate

$58.00

Previous: $60.00-3.3%
Capital Expenditures

-$885K

Previous: -$1.16M+24.0%
Free Cash Flow

$4.01M

Previous: $16.3M-75.4%
Net Income

$4.9M

Previous: $17.4M-71.9%
Operating Income

$8.35M

Previous: $23.5M-64.4%
Gross Profit

$63.5M

Previous: $82.4M-22.9%
Stock-Based Comp

$516K

Previous: $2.24M-76.9%

Revenue & EPS history

Resources Connection · Revenue · Quarterly

$163M

Q2 2024-18.6%vs Q2 2023
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Forward guidance

The company is cautiously optimistic that the buying environment and revenue growth will improve in calendar year 2024. They are focused on expanding capabilities in digital transformation and technology services, extending offshore talent strategies, and delivering on technology transformation projects.

Tailwinds

  • Strong client retention
  • Depth of conversations with largest clients
  • Expanding consulting capabilities in digital transformation and technology services
  • Extending offshore talent strategies by building Centers of Excellence in India and the Philippines
  • Delivering on technology transformation project to drive better operating efficiency

Headwinds

  • Clients continuing to take longer to approve budgets
  • Clients taking longer to green light significant new projects
  • Persistently uncertain macro environment
  • Billable hours decreased by 15.1%
  • Average bill rate declined by 4.7%

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2024

Historical avgQ2 2024

-2.0%

Avg return

Earnings day

-2.4%

Avg return

5 days after

-2.1%

Avg return

30 days after

44%

30 / 68 earnings

Positive

+17.6%

Q1 2022

Best reaction

-19.8%

Q3 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q3 2026+0.5%+7.1%+26.4%
Q2 2026-14.6%+3.8%-2.9%
Q1 2026-4.2%-14.1%-9.7%
Q4 2025+0.0%-1.3%-12.1%
Q3 2025-19.8%-23.1%-12.2%
Q2 2025+6.4%+4.0%-1.5%
Q1 2025-13.9%-13.7%-17.0%
Q4 2024+2.1%+0.6%-7.2%
Q3 2024-9.9%-5.2%-11.3%
Q2 2024-4.4%-6.7%-4.7%
Q1 2024-7.1%-2.8%-4.3%
Q4 2023+4.8%-0.8%-3.5%
Q3 2023-10.5%-8.1%-16.4%
Q2 2023-16.8%-8.1%-2.4%
Q1 2023-13.6%-12.9%-3.7%
Q4 2022+4.7%+6.8%-0.1%
Q3 2022+5.7%+4.0%-1.1%
Q2 2022+8.0%+2.0%-4.4%
Q1 2022+17.6%+9.5%+14.1%
Q4 2021+15.3%+19.5%+18.4%
Q3 2021+1.7%+2.5%+8.8%
Q2 2021-3.8%-6.3%-0.9%
Q1 2021-1.1%+3.0%-6.5%
Q4 2020-9.0%-5.7%+5.4%
Q3 2020-5.6%-0.2%+4.6%
Q2 2020+6.6%+1.0%-6.7%
Q1 2020-10.8%-15.5%-11.6%
Q4 2019+1.8%+2.8%+3.8%
Q3 2019-11.7%-5.6%+0.1%
Q2 2019+13.1%+15.0%+19.5%
Q1 2019+15.0%+11.1%-0.7%
Q4 2018-17.0%-11.4%-6.4%
Q3 2018-0.3%-2.2%-1.3%
Q2 2018-0.3%+5.4%+3.8%
Q1 2018+5.6%+4.2%+10.9%
Q4 2017-6.5%-8.6%-16.2%
Q3 2017-16.3%-17.5%-17.2%
Q2 2017-11.6%-12.9%-14.4%
Q1 2017-11.4%-10.4%-1.2%
Q4 2016-3.9%-3.8%-2.5%
Q3 2016-11.9%
Q2 2016-14.2%
Q1 2016+6.6%
Q4 2015-5.1%
Q3 2015-6.0%
Q2 2015+7.7%
Q1 2015+0.2%
Q4 2014+14.5%
Q3 2014-3.6%
Q2 2014+4.0%
Q1 2014-10.8%
Q4 2013-4.4%
Q3 2013-5.2%
Q2 2013-7.8%
Q1 2013+0.1%
Q4 2012+0.1%
Q3 2012-2.8%
Q2 2012-5.9%
Q1 2012+6.1%
Q4 2009+1.5%
Q4 2011+1.5%
Q3 2011-1.8%
Q3 2010-1.8%
Q2 2011+11.9%
Q4 2010+1.2%
Q2 2010+1.2%
Q1 2010+1.2%
Q1 2011+1.2%

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