Why Resources Connection Stock Is Dropping Today

Resources Connection, Inc. RGP shares are trading lower after the company reported third-quarter financial results.

What to Know: Resources Connection reported quarterly earnings of $0.37 per share compared to the analyst consensus estimate of $0.32 per share, representing a positive earnings surprise of 15.62% and a 43.1% decrease from earnings last year. The company reported quarterly sales of $186.78 million compared to the analyst consensus estimate of $183.92 million, representing a positive sales surprise of 1.55%.

Additionally, JP Morgan and Baird both lowered their price target on the stock:

• JP Morgan analyst Andrew Steinerman maintained an Underweight rating and lowered Resource Connection's price target from $18 to $15.
• Baird Analyst Mark Marcon maintained the company at a Neutral rating and lowered its price target from $21 to $18. Resources Connection currently has a 50-day moving average of $17.61

"We are particularly pleased with our progress related to value-based pricing, enabling us to achieve our highest third-quarter gross margin performance in over 10 years," said Kate W. Duchene, chief executive officer at Resource Connection.

RGP is a global consulting firm focused on project execution services that power clients' operational needs and change initiatives utilizing on-demand, experienced and diverse talent.

According to data from Benzinga Pro, Resource Connection shares were down 9.03%, trading at $15.12 at the time of publication. The stock has a 52-week high of $23.14 and a 52-week low of 15.38.