Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Resources Connection (NASDAQ:RECN) jumped as much as 12% today after the business consulting company released fiscal second-quarter earnings.
So what: Revenue was up 10.9% sequentially and 3.4% year over year to $146 million. Net income was up 20.1% to $7.1 million, or $0.18 per share, beating analysts' estimate of $0.15.
Now what: Management said customers are willing to look into doing more large-scale projects, which opens up opportunities in the future. But before we get too excited about the improvement, keep in mind that the company missed earnings by $0.03 last quarter, so not all results were positive. Shares trade at 28 times this year's earnings estimates, so the low growth rate year over year and a high multiple will keep me out of the stock right now.