Professional service provider Resources Connection, Inc. (RECN), Thursday revealed its first-quarter financial results, reporting a slip to loss from the same quarter a year ago, reflecting a slump in gross margin as well as revenues. Loss for the quarter came in ahead of Street expectations, while revenues fell short of estimates.
The Irvine, California-based company's net loss for the quarter was $7.186 million or $0.16 per share, compared to a profit of $12.492 million or $0.27 per share.
On average, eight analysts polled by Thomson Reuters expected a loss of $0.04 per share for the first quarter. Analysts' estimate typically excludes special items.
Revenues for the first quarter plummeted 42.9% to $118.263 million from $207.305 million in the same quarter last year, below Street view of $119.79 million.
The decline was primarily due to a 39.8% drop in revenues from the US as well as a 50% drop in revenues from the International market. On a constant dollar basis, revenues from the International market dropped 45.8% from the same quarter last year.
The company recorded an operating loss of $9.091 million for the quarter, compared to an operating profit of $21.604 million in the same quarter last year, primarily hurt by a decline in gross margin to 38.2% from 39.0%.
During the quarter, the company recorded an income tax gain of $1.7 million, compared to an income tax provision of $9.6 million in the year ago quarter.
Don Murray, chief executive officer, Resources Connection, said "Our first quarter results are reflective of a slowly recovering global economy and, to a lesser extent, the seasonal impact of vacations."
RECN closed Thursday's trading at $16.90, down $0.16 or 0.94%, on a volume of 0.701 million shares on the Nasdaq. In the after hours, the stock lost $0.90 or 5.33%, to trade at 16.00
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.