Sources Connection (RGP) Lags Q2 Earnings and Income Estimates

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Sources Connection (RGP) Lags Q2 Earnings and Income Estimates

Resources Connection (RGP) got here out with quarterly earnings of $0.21 per share, lacking the Zac


Resources Connection (RGP) got here out with quarterly earnings of $0.21 per share, lacking the Zacks Consensus Estimate of $0.23 per share. This compares to earnings of $0.39 per share a 12 months in the past. These figures are adjusted for non-recurring gadgets.

This quarterly report represents an earnings shock of -8.70%. 1 / 4 in the past, it was anticipated that this consulting firm would put up earnings of $0.06 per share when it really produced earnings of $0.14, delivering a shock of 133.33%.

During the last 4 quarters, the corporate has surpassed consensus EPS estimates simply as soon as.

Sources Connection, which belongs to the Zacks Staffing Corporations trade, posted revenues of $153.22 million for the quarter ended November 2020, lacking the Zacks Consensus Estimate by 1.08%. This compares to year-ago revenues of $184.51 million. The corporate has topped consensus income estimates two occasions during the last 4 quarters.

The sustainability of the inventory’s rapid worth motion based mostly on the recently-released numbers and future earnings expectations will largely rely on administration’s commentary on the earnings name.

Sources Connection shares have added about 0.1% because the starting of the 12 months versus the S&P 500’s decline of -0.8%.

What’s Subsequent for Sources Connection?

Whereas Sources Connection has outperformed the market to this point this 12 months, the query that involves buyers’ minds is: what’s subsequent for the inventory?

There aren’t any straightforward solutions to this key query, however one dependable measure that may assist buyers deal with that is the corporate’s earnings outlook. Not solely does this embody present consensus earnings expectations for the approaching quarter(s), but additionally how these expectations have modified recently.

Empirical analysis exhibits a robust correlation between near-term inventory actions and traits in earnings estimate revisions. Buyers can monitor such revisions by themselves or depend on a tried-and-tested score software just like the Zacks Rank, which has a formidable monitor document of harnessing the ability of earnings estimate revisions.

Forward of this earnings launch, the estimate revisions development for Sources Connection was blended. Whereas the magnitude and path of estimate revisions may change following the corporate’s just-released earnings report, the present standing interprets right into a Zacks Rank #3 (Maintain) for the inventory. So, the shares are anticipated to carry out consistent with the market within the close to future. You possibly can see the entire listing of at present’s Zacks #1 Rank (Robust Purchase) shares right here.

It will likely be fascinating to see how estimates for the approaching quarters and present fiscal 12 months change within the days forward. The present consensus EPS estimate is $0.14 on $152.13 million in revenues for the approaching quarter and $0.66 on $625.14 million in revenues for the present fiscal 12 months.

Buyers ought to be aware of the truth that the outlook for the trade can have a cloth impression on the efficiency of the inventory as nicely. When it comes to the Zacks Business Rank, Staffing Corporations is presently within the prime 23% of the 250 plus Zacks industries. Our analysis exhibits that the highest 50% of the Zacks-ranked industries outperform the underside 50% by an element of greater than 2 to 1.

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The views and opinions expressed herein are the views and opinions of the writer and don’t essentially mirror these of Nasdaq, Inc.



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