NASDAQ$RGP

Resources Connection Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Reported sequential revenue acceleration and margin expansion.

Resources Connection, Inc. reported a revenue increase of 2.2% sequentially to $156.6 million and an adjusted diluted earnings per common share of $0.14 for the third quarter of fiscal year 2021.

  • Revenue up 2.2% sequentially to $156.6 million compared to $153.2 million in the second quarter and as compared to $168.1 million in the prior year quarter
  • Same day constant currency revenue up 3.4% sequentially and off 10.4% from the prior year quarter
  • SG&A improved 4.5% to $52.8 million compared to $55.3 million in the prior year quarter
  • Adjusted diluted earnings per common share of $0.14 compared to $0.25 in the prior year quarter

Headline financials

Total Revenue

$157M

Previous: $168M-6.8%
EPS (adj)

$0.14

Previous: $0.21-33.3%
Consultant Headcount

2.7K

Previous: 2.9K-8.3%
Average Bill Rate

$125.00

Previous: $123.00+1.6%
Average Pay Rate

$64.00

Previous: $63.00+1.6%
Capital Expenditures

-$2.85M

Previous: -$2.04M-39.5%
Free Cash Flow

-$2.16M

Previous: $4.9M-144.1%
Net Income

$690K

Previous: $6.94M-90.1%
Operating Income

$2.04M

Previous: $3.45M-40.8%
Gross Profit

$57M

Previous: $61.4M-7.1%
Cash & Equivalents

$84M

Previous: $35.9M+133.7%
Total Assets

$502M

Previous: $486M+3.2%
Stock-Based Comp

$1.83M

Previous: $1.49M+23.0%

Revenue & EPS history

Resources Connection · Revenue · Quarterly

$157M

Q3 2021-6.8%vs Q3 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Forward guidance

RGP is rapidly strengthening its business reach especially in digital transformation, healthcare and financial advisory services, and is well-positioned to capture the multitude of opportunities as clients seek more cost flexibility in their human capital requirements and as talent demands more radical flexibility.

Tailwinds

  • Strengthening business reach in digital transformation
  • Strengthening business reach in healthcare
  • Strengthening business reach in financial advisory services
  • Experiencing increased interest from both new and existing clients around implementing an agile workforce strategy
  • Well-positioned to capture the multitude of opportunities as clients seek more cost flexibility in their human capital requirements and as talent demands more radical flexibility

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 Q3 2021

Historical avgQ3 2021

-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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