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View All NewsResources Connection’s Q4 revenue rises 2.5%
Resources Connection Inc. (NASD: RECN) reported revenue edged up 2.5% year over year, or 2.6% in constant currency, to $152.5 million in its fiscal fourth quarter ended May 28. Approximately 0.9% of the increase is attributable to the shift of the Memorial Day holiday to the first quarter of fiscal 2017.
Fourth-quarter revenue in the US increased 3.1% to $124.4 million.
International revenue remained flat year over year at $28.1 million. Europe’s fourth-quarter revenues increased 13.5%, offsetting a 6.5% year-over-year revenue decline in Asia Pacific.
Gross margin also increased, attributable to the shift in the paid Memorial Day holiday and decreased health care costs.
Irvine, Calif.-based Resources Connection ranks as the fifth-largest US provider of finance/accounting staffing. Its operating subsidiary is Resources Global Professionals.
(US$ thousands) | Q4 2016 | Q4 2015 | % growth | % growth constant currency |
Revenue | $152,515 | $148,814 | 2.5% | 2.6% |
Gross margin | $60,899 | $57,861 | 5.3% | |
Gross margin percentage | 39.9% | 38.9% | ||
Net income | $8,677 | $8,108 | 7.0% |
Quote
“Overall, I am pleased with our fiscal 2016 financial results,” said President and CEO Tony Cherbak. “On a constant currency basis, revenue improved 2.9%, gross margin increased to 38.8% and we saw double digit gains in net earnings and earnings per share. While the uncertainty over Brexit will play out during fiscal 2017 and beyond, we will continue to pursue growth opportunities in areas such as implementation of revenue recognition and lease accounting standards, M&A integration and data solutions, among others.”
Full-year results
(US$ thousands) | FY 2016 | FY 2015 | % growth |
Revenue | $598,521 | $590,589 | 1.3% |
Gross margin | $232,166 | $228,362 | 1.7% |
Gross margin percentage | 38.8% | 38.7% | |
Net income | $30,443 | $27,508 | 10.7% |
Share price and market cap
Shares in Resources Connection edged up by 0.76% in early afternoon trading today to $15.27 and the company had a market cap of $560.23 million, according to Yahoo!