On March 28, Resources Connection (NASDAQ:RECN) released third-quarter earnings for the period ended Feb. 28.
- International expansion helped grow revenue by 17%.
- Escalating SG&A costs contributed to diminishing margins and lower profits.
- Resources Connection boasts a four-star rating in Motley Fool CAPS, while competitor Gartner (NYSE:IT) only rates two stars.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q3 2007 |
Q3 2006 |
Change | |
|---|---|---|---|
|
Sales |
$187.5 |
$160.3 |
17.0% |
|
Net Profit |
$13.1 |
$13.8 |
(4.9%) |
|
EPS |
$0.26 |
$0.27 |
(3.7%) |
|
Diluted Shares |
51.1 |
51.9 |
(1.6%) |
Get back to basics with the income statement.
Margin Checkup
|
Q3 2007 |
Q3 2006 |
Change* | |
|---|---|---|---|
|
Gross Margin |
38.2% |
38.1% |
0.1 |
|
Operating Margin |
11.2% |
13.3% |
(2.1) |
|
Net Margin |
7.0% |
8.6% |
(1.6) |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q3 2007 |
Q3 2006 |
Change |
|---|---|---|---|
|
Cash + Invest. |
$222.6 |
$149.2 |
49.2% |
|
Accounts Rec. |
$107.8 |
$93.5 |
15.2% |
No liabailities data available.
The balance sheet reflects the company's health.
Cash Flow Highlights
No data available. Lame.
Free cash flow is a Fool's best friend.
Related Foolishness:
- Foolish Forecast: Resources Global's Shiny Pennies
- Foolish Forecast: Hailing Heidrick & Struggles
- Resources Global Still Spinning
Resources Connection is a Stock Advisor recommendation. To check out more of the Fool's picks, try a free subscription for 30 days.
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