Cigna earnings beat by $0.04, revenue topped estimates
DALLAS - Resources Connection, Inc. (NASDAQ:RGP) reported third quarter fiscal 2025 results that beat analyst estimates, but saw revenue decline significantly year-over-year as demand remained challenging. The company’s shares fell 4% following the earnings release.
The professional services firm reported adjusted earnings per share of -$0.08, better than the -$0.11 expected by analysts. Revenue came in at $129.4 million, just above the consensus estimate of $129.42 million but down 14.5% compared to $151.3 million in the same quarter last year.
"We delivered results in line or better than our outlook, even though mid-week holiday impact was deeper than expected and the second half of Q3 became more disrupted in the US," said CEO Kate W. Duchene.
The company saw revenue declines across all its segments compared to the prior year quarter. On-Demand Talent revenue fell 26.6% to $47.1 million, while Consulting revenue dropped 5.8% to $52.6 million.
Resources Connection recorded a net loss of $44.1 million for the quarter, which included a non-cash goodwill impairment charge of $42 million. This compares to net income of $2.6 million in the year-ago period.
The company said demand remains "choppy" with clients continuing to be cautious about transformation projects and filling interim roles. However, it noted improvements in pricing, deal sizes and win ratios.
Despite the revenue declines, Resources Connection maintained its quarterly dividend of $0.14 per share. The company ended the quarter with $72.5 million in cash and no debt.
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