The business of providing temporary workers on a contract or project basis is always going to be a volatile one, so investors in Resources Connection (Nasdaq:RECN) just have to make their peace with that. What's a little more challenging, though, is figuring out how that volatility will break. Does a stagnant economy in North America encourage companies to hire temporary workers in lieu of full-timers? Will a recession in Europe destroy more business than it creates for this company? Can this company regain attractive past levels of cash flow production and returns on capital?
A Decent Fiscal Second Quarter
Resources Connection reported that revenue rose a little less than 5% from last year and a little more than 5% from the prior quarter. The U.S. remained weak, as revenue was up just a bit more than 1%, while Europe and Asia were strong with over 17% and 9% constant currency growth, respectively.
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