Try as we might, it's hard to suppress the memory of Resources Global's
What analysts say:
- Buy, sell, or waffle? Eleven analysts follow RG, which gets three buy ratings and eight holds.
- Revenues. On average, they're looking for 11% sales growth to $203.5 million.
- Earnings. However, profits are expected to drop by a penny, to $0.28 per share.
What management says:
The only noteworthy news from RG since last quarter's report was November's announcement that the company has hired itself a new chief bean counter. Since the end of that month, Nate Franke, a 22-year veteran of Deloitte & Touche specializing in consumer goods and tech, has been Resources Global's CFO.
What management does:
Good career move, do you think? Well, let's check out RG's numbers, and find out just what Franke has gotten himself into:
Margins |
5/06 |
8/06 |
11/06 |
2/07 |
5/07 |
8/07 |
---|---|---|---|---|---|---|
Gross |
39.3% |
39.4% |
39.4% |
39.3% |
39.2% |
38.8% |
Operating |
15.0% |
13.8% |
13.2% |
12.6% |
12.1% |
11.6% |
Net |
9.6% |
8.7% |
8.2% |
7.8% |
7.4% |
7.2% |
One Fool says:
Basically, Franke's got to fix a year-long stretch of slowly contracting gross margins, compounded by operating and net margins that have been shrinking even longer.
Things aren't quite as miserable as the trend suggests, however. RG's operating margin compares favorably to that of, say, Robert Half
Do Tom Gardner and the lads at Stock Advisor think Franke can get the job done? Read our most recent update on the company here (if you haven't already, you'll need to sign up for a free trial of the service first) and find out what odds they're laying on Franke's success -- and whether you should be betting on him succeeding.
Need more Resources research? Peruse:
- 7 Highly Rated Stocks on Sale
- Resources Connection Falls Short: Fool by Numbers
- Our interview with CEO Donald Murray.
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