Overview * Resources Connection fiscal Q1 revenue declines to $120.2 mln from $136.9 mln year-over-year * Adjusted EBITDA for fiscal Q1 beats analyst expectations * Net loss for fiscal Q1 narrows to $2.4 mln from $5.7 mln Outlook * Company plans to deepen consulting capabilities in CFO Advisory & Digital Transformation * Resources Connection aims to strengthen its on-demand business for market relevance * Company focuses on cost structure redesign to improve shareholder returns Result Drivers * HIGHER BILL RATES – Co increased average bill rates by 2.2% due to pricing discipline and pursuit of higher-value engagements * DECREASED BILLABLE HOURS – Billable hours decreased 14.3% due to choppy demand as clients delayed projects amid economic uncertainty * COST STRUCTURE IMPROVEMENTS – Reduction in SG&A expenses driven by restructuring and lower technology transformation costs Key Details Metric Beat/Mi Actual Consens ss us Estimat e Q1 $120.22 Revenue mln Q1 EPS -$0.07 Q1 Net -$2.40 Income mln Q1 Beat $3.10 -$1.50 Adjusted mln mln (2 EBITDA Analyst s) Q1 Gross 39.50% Margin Q1 2.50% Adjusted EBITDA Margin Q1 Gross $47.46 Profit mln Q1 -$1.98 Operatin mln g Income Analyst Coverage * The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and 1 "sell" or "strong sell" * The average consensus recommendation for the business support services peer group is "buy" * Wall Street's median 12-month price target for Resources Connection Inc is $7.00, about 30.7% above its October 7 closing price of $4.85 * The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago Press Release: For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact . (This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
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