Overview

* Resources Connection ( RGP ) fiscal Q1 revenue declines to $120.2 mln from $136.9 mln year-over-year

* Adjusted EBITDA for fiscal Q1 beats analyst expectations

* Net loss for fiscal Q1 narrows to $2.4 mln from $5.7 mln

Outlook

* Company plans to deepen consulting capabilities in CFO Advisory & Digital Transformation

* Resources Connection ( RGP ) aims to strengthen its on-demand business for market relevance

* Company focuses on cost structure redesign to improve shareholder returns

Result Drivers

* HIGHER BILL RATES - Co increased average bill rates by 2.2% due to pricing discipline and pursuit of higher-value engagements

* DECREASED BILLABLE HOURS - Billable hours decreased 14.3% due to choppy demand as clients delayed projects amid economic uncertainty

* COST STRUCTURE IMPROVEMENTS - Reduction in SG&A expenses driven by restructuring and lower technology transformation costs

Key Details

Metric Beat/Mi Actual Consens

ss us

Estimat

e

Q1 $120.22

Revenue mln

Q1 EPS -$0.07

Q1 Net -$2.40

Income mln

Q1 Beat $3.10 -$1.50

Adjusted mln mln (2

EBITDA Analyst

s)

Q1 Gross 39.50%

Margin

Q1 2.50%

Adjusted

EBITDA

Margin

Q1 Gross $47.46

Profit mln

Q1 -$1.98

Operatin mln

g Income

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell"

* The average consensus recommendation for the business support services peer group is "buy"

* Wall Street's median 12-month price target for Resources Connection Inc ( RGP ) is $7.00, about 30.7% above its October 7 closing price of $4.85

* The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)