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Can Resources Connection Stock Rebound With Earnings?

Resources Connection reports earnings on April 6th

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Resources Connection, Inc. (NASDAQ: RGP) is a global management consulting firm with approximately 5,000 professionals. RGP helps businesses solve problems across the enterprise in the areas of transactions, regulations, and transformations. At last glance, RGP closed Friday up 1%, at $16.99.

Earlier this week, Resources Connection announced that the consulting company will host an Investor Day on Tuesday, April 12, at the Nasdaq MarketSite in New York City. RGP's senior leadership team will also issue a press release reporting financial results for its third quarter of fiscal 2022 after the close on April 6. Wall Street analysts anticipate that Resources Connection will report earnings of $0.40 per share in the looming Q3 earnings report.

Resources Connection stock has increased about 27% year-over-year and RGP is up 30% since its April 2021 low of $12.95. However, shares of RGP have dropped 3% in value year-to-date and Resources Connection stock is currently trading down 15% from its 11-year high of $20.16, reached in early January.

Moreover, the management consulting company offers an attractive dividend yield of 3.33% with a forward dividend of $0.56. Resources Connection stock also provides a decent valuation, with RGP trading at a price-earnings ratio of 10.99 and a price-sales ratio of 0.77. In addition, the company holds a manageable balance sheet with $70.63 million in cash and $70.62 million in total debt.

There are only two analysts covering Resources Connection stock. Heading into Friday's trading both analysts were leaning bearish, with one sporting a tepid "hold" rating and the other carrying a "sell." 

 

 

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