Stock Monitor: GEE Group Post Earnings Reporting
LONDON, UK / ACCESSWIRE / January 16, 2018 / Active-Investors.com has just released a free earnings report on Resources Connection, Inc. (NASDAQ: RECN). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=RECN. The Company, a multinational business consulting firm operating as Resources Global Professionals ("RGP"), reported its second quarter fiscal 2018 (Q2 FY18) operating results on January 03, 2018. The consulting Company outperformed top- and bottom-line expectations. Register today and get access to over 1000 Free Research Reports by joining our site below:
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Active-Investors.com is currently working on the research report for GEE Group, Inc. (NYSE AMER: JOB), which also belongs to the Services sector as the Company Resources Connection. Do not miss out and become a member today for free to access this upcoming report at:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Resources Connection most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
www.active-investors.com/registration-sg/?symbol=RECN
Earnings Highlights and Summary
During Q2 FY18, RGP's revenue grew 6.2%, or 5.3% on a constant currency basis, to $156.7 million compared to $147.6 million in Q2 FY17. Excluding Taskforce's revenue of $3.7 million in the reported quarter, the Company's revenue advanced 3.7%. RGP's revenue numbers exceeded analysts' expectations of $152.8 million.
During Q2 FY18, RGP's revenue in the US increased 1.5% on a y-o-y basis, reflecting increased activity and bill rates in several of the Company's largest markets. RGP noted that the growth in these markets was partially attributable to its strategic initiatives, including its focus on improvement in bill rates per hour. RGP's International revenue surged 24.7% on a y-o-y basis, or 20.3% on a constant currency basis, reflecting strength in the Company's United Kingdom, Ireland, and Sweden practices. In the reported quarter, RGP's revenue in Europe grew 20.9% on a y-o-y basis, excluding revenue attributable to the Taskforce acquisition.
RGP's gross margin decreased 40 basis points to 37.9% in Q2 FY18 from 38.3% in Q2 FY17, primarily due to the impact of lower gross margin of Taskforce, consistent with other European practices' performance. The Company's adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) was $13.4 million, or 8.5% of revenue, and $12.3 million, or 8.3% of revenue, for the reported quarter and the year ago same period, respectively.
For Q2 FY18, RGP's net income improved to $8.1 million, or $0.27 per diluted share, including $0.08 per diluted share related to the reversal of valuation allowances on international deferred tax assets, offset by costs of $0.06 per diluted share related to severance, acquisition, and transformation related expenses in the reported quarter. The Company had reported a net income of $5.7 million, or $0.16 per diluted share, in Q2 FY17. RGP's earnings surpassed Wall Street's estimates of $0.20 per share.
Cash Matters
RGP's cash provided by operations was $14.8 million for Q2 FY18 compared to $15.2 million for Q2 FY17. In the reported quarter, the Company paid a dividend of $0.12 per share to its shareholders, resulting in a total dividend payment of $3.6 million.
RGP did not repurchase any of its shares during Q2 FY18, and hence has $125.1 million available for share purchases under its share repurchase program. As of November 25, 2017, the Company's cash, cash equivalents, and short-term investments were $56.3 million compared to $49.6 million at the end of the first quarter on August 26, 2017.
Update on Strategic Initiative
RGP stated that during Q2 FY18, the Company launched a new learning and development program to enhance training and accountability across the organization – including providing training on new management techniques and processes. The Company's Strategic Client Program is performing well with revenue of this program up 8.0% since the beginning of the fiscal year, and is expected to deliver improved growth in the fiscal year 2018. RGP expects to complete substantially all of its sales transformation by the end of the fiscal year.
The Company also stated that its initiative to redesign its business model to enhance client offerings is close to completion, with a focal point on building the Company's integrated solutions capabilities and delivering multi-disciplinary offerings to its clients in three areas of focus – Transaction Services, Technical Accounting Services, and Data & Analytics. In Q2 FY18, the Company implemented the new operating model for sales, talent, and integrated solutions within RGP for all of North America.
Stock Performance Snapshot
January 12, 2018 - At Friday's closing bell, Resources Connection's stock declined 1.48%, ending the trading session at $16.60.
Volume traded for the day: 88.94 thousand shares.
Stock performance in the last month – up 8.50%; previous three-month period – up 12.54%; past six-month period – up 17.31%; and year-to-date – up 7.44%
After last Friday's close, Resources Connection's market cap was at $495.34 million.
Price to Earnings (P/E) ratio was at 28.57.
The stock has a dividend yield of 2.89%.
The stock is part of the Services sector, categorized under the Staffing & Outsourcing Services industry. This sector was up 0.9% at the end of the session.
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