resource connection (RGP – Free Report) posted quarterly earnings of $0.59 per share, beating the Zacks Consensus estimate of $0.41 per share. This compares to his earnings of $0.47 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents a revenue surprise of 43.90%. A quarter ago, the consulting firm was expected to post earnings of $0.36 per share for him, but he actually made earnings of $0.60, a surprise 66.67%.
In the last four quarters, the company has beaten consensus EPS estimates four times.
The sustainability of the immediate share price movement based on recently released figures and future earnings projections depends primarily on management’s comments on the earnings report.
Resources Connection shares are up about 0.9% year-to-date, against a -0.4% decline in the S&P 500.
What’s next for resource connections?
Resources Connection has outperformed the market so far this year, but the question on the minds of investors is: what next for equities?
There is no easy answer to this important question, but one reliable metric that can help investors address this is a company’s earnings outlook. This includes not only the current consensus earnings forecast for the next quarter, but also how those forecasts have changed recently.
Empirical studies show a strong correlation between short-term stock price movements and earnings forecast revision trends. Investors can track such revisions themselves or rely on proven valuation tools like Zacks Rank, which has an impressive track record of harnessing the power of revenue forecast revisions.
Ahead of this earnings release, Resources Connection’s revised estimate Trend: Mixed. The magnitude and direction of the revision to estimates could change following the company’s just-released earnings report, but the current situation translates to a Zacks rank of #3 (hold) on the stock. Therefore, the stock is expected to perform in line with the market in the near future. A complete list of today’s #1 (Strong Buy) Zachs Stocks can be found here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change going forward. Current consensus EPS estimates are $0.34 on next quarter earnings of $205.99 million and $1.79 on earnings of $827.51 million for the current fiscal year.
Investors should be mindful of the fact that industry outlook can also have a significant impact on stock price performance. In terms of Zacks industry ranks, the staffing agency is currently in the top 32% of his Zacks industry of over 250. Our research shows that the top 50% of industries ranked by Zacks are more than twice as good as the bottom 50%.
Another stake in the broader Zacks Business Services sector, Booz Allen Hamilton (bar – Free Report) has not yet reported results for the quarter ended December 2022. Results he will be released on January 27th.
The defense contractor is expected to post quarterly earnings of $1.03 per share in its next report, representing a +1% year-over-year change. Consensus EPS estimates for the quarter were revised down 1.2% to current levels over the last 30 days.
Booz Allen Hamilton’s revenue is expected to grow 7.8% year-over-year to $2.19 billion.