Resources Connection Inc (RGP) Q4 2024 Earnings Call Highlights: Surpassing Revenue and Margin ...

GuruFocus.com10-10

Revenue: $148.2 million for Q4, exceeding the high end of the outlook range. Gross Margin: 40.2% in Q4, above the 37.5% to 38% outlook range. Adjusted EBITDA: $13.1 million, or an 8.8% adjusted EBITDA...

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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nResources Connection Inc (RGP) Q4 2024 Earnings Call Highlights: Surpassing Revenue and Margin ...\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-10-10 03:06 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/resources-connection-inc-rgp-q4-190602833.html><strong>GuruFocus.com</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Revenue: $148.2 million for Q4, exceeding the high end of the outlook range.\nGross Margin: 40.2% in Q4, above the 37.5% to 38% outlook range.\nAdjusted EBITDA: $13.1 million, or an 8.8% adjusted EBITDA...</p>\n\n<a href=\"https://finance.yahoo.com/news/resources-connection-inc-rgp-q4-190602833.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"RGP","symbol_name":"Resources Global Professionals","start_time":0,"source_url":"https://finance.yahoo.com/news/resources-connection-inc-rgp-q4-190602833.html","article_id":"2474500203","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/OFBOgXoDSFd5tKgn6bmq3A--~B/aD00MDA7dz00MDA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/us.finance.gurufocus/5e7889f7a082956be555b8da7b75af50"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2474500203","pubTimestamp":1728500762,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Revenue: $148.2 million for Q4, exceeding the high end of the outlook range.Gross Margin: 40.2% in Q4, above the 37.5% to 38% outlook range.Adjusted EBITDA: $13.1 million, or an 8.8% adjusted EBITDA margin for Q4.Free Cash Flow: $21 million generated in fiscal '24.SG&A Expenses: $46.5 million run rate in Q4, an 11% decrease from the prior year.Cash and Cash Equivalents: $109 million with zero outstanding debt.Share Repurchase: $3 million worth of shares repurchased at an average price of $12 per share.Q1 Revenue Outlook: Projected to be in the range of $135 million to $140 million.Q1 Gross Margin Outlook: Estimated to be in the range of 37.5% to 38.5%.Q1 SG&A Expense Outlook: Expected to be in the range of $49 million to $51 million.GuruFocus has detected 3 Warning Sign with RGP.Resources Connection Inc  exceeded the top end of their revenue and gross margin outlook for Q4.","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"RGP":"Resources Global Professionals"},"translate_title":"Resources Connection Inc(RGP)2024年第四季度收益看涨期权亮点：超过收入和利润率……","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"RGP":1},"content_text":"Revenue: $148.2 million for Q4, exceeding the high end of the outlook range.\nGross Margin: 40.2% in Q4, above the 37.5% to 38% outlook range.\nAdjusted EBITDA: $13.1 million, or an 8.8% adjusted EBITDA margin for Q4.\nFree Cash Flow: $21 million generated in fiscal '24.\nSG&A Expenses: $46.5 million run rate in Q4, an 11% decrease from the prior year.\nCash and Cash Equivalents: $109 million with zero outstanding debt.\nShare Repurchase: $3 million worth of shares repurchased at an average price of $12 per share.\nDividends: $4.7 million distributed in the quarter.\nQ1 Revenue Outlook: Projected to be in the range of $135 million to $140 million.\nQ1 Gross Margin Outlook: Estimated to be in the range of 37.5% to 38.5%.\nQ1 SG&A Expense Outlook: Expected to be in the range of $49 million to $51 million.\n\n\nWarning! GuruFocus has detected 3 Warning Sign with RGP.\n\nRelease Date: July 18, 2024\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.\n Positive Points \n\nResources Connection Inc (NASDAQ:RGP) exceeded the top end of their revenue and gross margin outlook for Q4.\nThe company maintained a pristine balance sheet with no outstanding debt.\nStrong client engagement extensions and retention were noted, with new projects starting to convert more consistently.\nRGP is expanding its technology, digital, and data capabilities to meet evolving client needs.\nThe acquisition of Reference Point is expected to expand RGP's portfolio of high-value advisory services in the financial services industry.\n\n Negative Points \n\nRevenue declined by 20% on a same-day constant currency basis compared to the fourth quarter of the prior fiscal year.\nThe macroeconomic environment remains choppy, impacting project starts and client spending.\nThe company's growth pipeline softened towards the end of the fiscal year.\nEnterprise average bill rate decreased from $129 to $120 constant currency year over year.\nThe first quarter outlook projects a revenue decline of around 20% year over year on a constant currency basis.\n\n Q & A Highlights \nQ: How has the rollout of the talent management and contract management systems in North America progressed, and are there plans for international expansion? A: Kate Duchene, CEO, stated that the launch was outstanding, with significant efficiency gains. Bhadreskumar Patel, COO, added that they plan to roll out these systems internationally and to additional business units, focusing on financial management system implementation later this year.\nQ: With the consultant count down from last year, how prepared is RGP for a potential market upturn? A: Kate Duchene, CEO, explained that RGP is well-prepared with three main engines: revenue, talent acquisition, and consulting delivery. The talent organization is exceptional at pipelining and just-in-time recruiting, leveraging employee referrals and alumni channels.\nQ: What are RGP's plans regarding share buybacks given the current stock price and liquidity? A: Jenn Ryu, CFO, mentioned that the company finds the current stock price attractive for buybacks and has ample liquidity. They plan to approach buybacks opportunistically and may increase the pace given the current price levels.\nQ: How does RGP's business trajectory compare to US real GDP trends, given the mixed macroeconomic signals? A: Kate Duchene, CEO, noted the unusual macroenvironment with GDP and labor market trends diverging. Clients are waiting for interest rate declines to boost capital spending. RGP is focused on building its pipeline and increasing client engagement to drive future opportunities.\nQ: What drove the outperformance in Q4, particularly in revenue and SG&A? A: Jenn Ryu, CFO, highlighted better-than-expected performance in North America, especially in healthcare and financial services, and strong results in Asia Pacific. SG&A favorability was driven by lower medical costs and disciplined cost management, including careful evaluation of attrition and capacity.\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.This article first appeared on \nGuruFocus.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2474500203"}