Resources nection(RGP) ZACKS·2024-12-26 16:01Earnings ESP and Zacks Rank Analysis - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate being a more recent version of the consensus EPS estimate [1] - A positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1 (Strong Buy), 2 (Buy), or 3 (Hold), with stocks in this combination producing a positive surprise nearly 70% of the time [3] - A negative Earnings ESP reading does not necessarily indicate an earnings miss, but it is difficult to predict an earnings beat with confidence for stocks with negative Earnings ESP readings or Zacks Rank of 4 (Sell) or 5 (Strong Sell) [6] Resources Connection Earnings Outlook - Resources Connection is expected to post break-even quarterly earnings per share, representing a year-over-year change of -100% [4] - The Most Accurate Estimate for Resources Connection is higher than the Zacks Consensus Estimate, suggesting analysts have recently become bullish on the company's earnings prospects, resulting in an Earnings ESP of +200% [10][22] - The consensus EPS estimate for the quarter has been revised 42.22% lower over the last 30 days, reflecting how analysts have collectively reassessed their initial estimates [20] Revenue and Historical Performance - Revenues for Resources Connection are expected to be 0.04 per share but actually produced break-even earnings, delivering a surprise of -100% [23] Market Expectations and Stock Movement - The market expects Resources Connection to deliver a year-over-year decline in earnings on lower revenues for the quarter ended November 2024 [13] - The stock might move higher if key numbers top expectations in the upcoming earnings report, expected to be released on January 2, but could move lower if they miss [9] - While an earnings beat or miss may not be the sole basis for stock movement, unforeseen catalysts can help stocks gain despite an earnings miss [18]