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Nov 25, 2023
Resources Connection Q2 2024 Earnings Report
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.
Key Takeaways
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.
Revenue by Geographic Location
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.
Positive Outlook
- 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
Challenges Ahead
- Clients continuing to take longer to approve budgets
- Clients taking longer to green light significant new projects
- Persistently uncertain macro environment
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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