Resources Connection rallies after consulting firm reports 2Q revenue grew 20%

Resources Connection Inc (NASDAQ:RECN) rose Friday after reporting that its second-quarter revenue increased more than 20% from a year earlier to $188.8 million.

The Irvine, California-based consulting firm said Thursday in a press release that net income for the three months ended November 24 advanced to $10.6 million, from $8.1 million. Diluted earnings per common share climbed to $0.33, from $0.27.

Shares climbed $2.37, or 17%, to $15.97 in Friday’s Nasdaq trading.

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Gross margin of almost 39% improved from 37.9% over improvement in the pay-rate-to-bill-rate ratio and lower costs in the company’s self-insured medical program.

“We are extremely pleased by the momentum in our business now,” CEO Kate Duchene said in a statement.

The company announced the planned retirement of chief accounting officer  John Bower, adding that the company has started looking for a senior vice president of finance.

Resources Connection was spun off from Deloitte & Touche in a 1999 management buyout and went public the next year.

Contact Dennis Fitzgerald at [email protected]
 

Story by ProactiveInvestors