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Feb 22, 2020
Resources Connection Q3 2020 Earnings Report
Resources Connection reported third quarter results, impacted by extra holidays and COVID-19.
Key Takeaways
Resources Connection's third quarter revenue was $168.1 million, a decrease of 6.4% year-over-year. Net income was $6.9 million, compared to $5.8 million in the prior year quarter. Diluted earnings per share was $0.21, compared to $0.18 in the prior year quarter.
Third quarter revenue and gross margin both reflect as-expected holiday impact and impact from COVID-19
Revenue of $168.1 million, down 6.4% from prior year quarter, impacted by extra holidays and COVID-19 in Asia Pacific
Gross margin percentage of 36.5%, a decrease of 130 basis points from prior year quarter
Net income of $6.9 million, compared to $5.8 million in prior year quarter; includes $6.6 million of U.S. tax benefit
Revenue by Geographic Location
Forward Guidance
Management expects the COVID-19 pandemic to have an adverse impact on our operating results in the fourth quarter of fiscal 2020 and continues to assess the financial impact for the upcoming fiscal year.
Challenges Ahead
- COVID-19 is expected to have an adverse impact on operating results in Q4 2020.
- Significant uncertainty as to the likely effects of this pandemic
- May reduce demand for services
- May delay client decisions to procure services
- Pandemic is still developing globally, including in the U.S.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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