RGP - Resources Connection Earnings: Outlook Is Poor Sell
2024-04-04 09:00:34 ET
Summary
- Resources Connection, Inc. delivered unsatisfactory guidance with expected revenue contraction and gross margin compression.
- The stock has a strong balance sheet and pays out a dividend of approximately 4.7%.
- The company must improve its prospects to avoid potential dividend cuts and damage to investor confidence.
Investment Thesis
Resources Connection, Inc. ( RGP ) delivered unsatisfactory guidance together with its fiscal Q3 2024 results . Not only are its revenues expected to contract by approximately 21% to 23% y/y, but also, its gross margins are also expected to compress by approximately 300 basis points to 38%....
Resources Connection Earnings: Outlook Is Poor, Sell