Resources Connection, Inc. (RECN) reported its latest quarterly earnings on Thursday, January 2. The company posted increased earnings for the quarter.
Revenue came in at $184.5 million. This was down from $188.8 million at this time last year.
“We experienced an improvement in revenue in North America this quarter and modest strengthening in Europe – both good developments since the previous quarter,” said Resource Connection’s CEO, Kate W. Duchene. “Despite the slight revenue dip year-over-year, we are actively managing the business to deliver more profit through gross margin improvement and lower [selling, general and administrative expenses].”
Resources Connection posted net income of $12.3 million for the quarter. This was a 16.8% increase from net income of $10.6 million at the same time last year.
Founded in 1996, Resources Connection, Inc. operates under the name RGP, or Resources Global Professionals. The Irvine, California-based company operates in the areas of consulting, staffing, business transformation, and finance and accounting solutions. The company’s North America locations brought in revenue of $152.4 million during the quarter. Abroad, Resources Connection posted revenue of $19.4 million in Europe and $12.7 million in the Asia Pacific region.
Resources Connection, Inc. (RECN) shares ended the week at $17.40, up 6.6% for the week.
Landec Reports Earnings
Landec Corporation (LNDC) released its latest quarterly earnings on Thursday, January 2. The company’s profit fell despite increased revenue.
The company posted revenue of $142.6 million for the quarter. This was up 14% from revenue of $24.6 million during the same quarter last year.
“Our Lifecore business had another tremendous quarter with impressive year-over-year growth in revenues, operating income and EBITDA,” said Landec’s President and CEO, Dr. Albert Bolles. “Lifecore continues to demonstrate success in moving customers through the product development lifecycle to commercialization and advancing its deep pipeline of development customers that will drive long-term, profitable growth.”
Landec reported gross profit of $15.5 million during the quarter. This was an 8% decrease from $16.9 million in gross profit last year at this time.
A health and wellness-focused company, Landec Corporation is primarily comprised of two distinct segments: Curation Foods and Lifecore. Curation foods is a collection of health-focused food brands, including Eat Smart, O Olive Oil and Vinegar, Yucatan, Cabo Fresh and BreatheWay. The company’s Lifecore segment is focused on production of sodium hyaluronate, which is used in the treatment of eye and joint-related conditions. The company’s Curation Foods segment brought in revenue of $119.8 million while Lifecore accounted for $22.8 million in revenue for the quarter.
Landec Corporation (LNDC) shares ended the week at $10.03, down 12.6%.
Conagra Posts Earnings
Conagra Brands, Inc. (CAG) released its latest quarterly earnings report on Thursday, December 19. The company posted increased sales and earnings for the quarter.
Conagra reported revenue of $2.8 billion for the quarter. This was up 18.3% from $2.4 billion in revenue reported at this time last year.
“Our second quarter results reflect solid execution in applying the Conagra Way playbook across our portfolio,” said Conagra’s President and CEO Sean Connolly. “We maintained our strong momentum in frozen and snacks. We also made good progress on our large grocery brands, Hunt’s and Chef Boyardee, both of which made sequential improvements.”
The company reported quarterly net income of $260.5 million. This was up from $131.6 million in net income at the same time last year.
Conagra Brands owns a variety of familiar household food brands. In addition to Hunt’s and Chef Boyardee, the company’s product offerings include Duncan Hines, Slim Jim, Marie Callender’s, Reddi Wip and Orville Redenbacher’s. The company’s Grocery and Snacks segment led the way with $956.4 million in sales for the quarter, followed by the Refrigerated & Frozen segment with $912.7 million in sales.
Conagra Brands, Inc. (CAG) shares ended the week at $33.34, down 2.3%.
The Dow started the week of 12/30 at 28,655 and closed at 28,635 on 1/3. The S&P 500 started the week at 3,240 and closed at 3,235. The NASDAQ started the week at 9,004 and closed at 9,021.
Treasury Yields Fall as Mideast Tensions Rise
U.S. Treasury yields fell on Friday amid rising tension between the U.S. and Iran. A series of attacks in Iraq rang in the new year, pushing oil prices upward and halting a rally in the stock markets.
On Thursday, the U.S. conducted an airstrike in Baghdad, killing Iranian General Qassem Soleimani. The attack followed an attempted raid of the U.S. embassy in Baghdad, Iraq on New Year’s Eve, which was believed to be organized by Iran.
“This strike was aimed at deterring future Iranian attack plans,” said the U.S. Department of Defense in a January 2 release. “The United States will continue to take all necessary action to protect our people and our interests wherever they are around the world.”
The quick escalation of unrest in Iraq served to drive up oil prices and reverse the week’s stock market growth. Brent crude oil jumped 4% on Friday while the Dow, Nasdaq and S&P 500 each fell during early trading on Friday.
Likewise, the benchmark 10-year Treasury note yield fell on Friday. After opening at 1.92%, the 10-year Treasury note was at 1.82% during early trading. The yield on the 30-year Treasury bond fell from an opening yield of 2.39% to 2.28%.
“Global oil markets will be volatile for weeks to come,” said Greg Valliere of AGF Investments. “There’s a reason, finally, for caution in the stock market.”
The 10-year Treasury note yield closed at 1.79% on 1/3, while the 30-year Treasury bond yield was 2.25%.
Mortgage Rates Tick Downward
Freddie Mac released its latest Primary Mortgage Market Survey on Thursday, January 2. Rates fell slightly from last week.
This week, the 30-year fixed rate mortgage averaged 3.72%, down from last week’s average of 3.74%. At this time last year, the 30-year fixed rate mortgage averaged 4.51%.
The 15-year fixed rate mortgage averaged 3.16% this week, down from an average of 3.19% last week. During the same week last year, the 15-year fixed rate mortgage averaged 3.99%.
“The combination of improved economic data and market sentiment has led to stability in mortgage rates, which have hovered around 3.7% for nearly the last two months,” said Sam Khater, Chief Economist at Freddie Mac. “The stability is welcome news after the interest rate turbulence of the last year, which caused a slowdown in the housing market and other interest rate sensitive sectors. The low mortgage rate environment combined with the red-hot labor market is setting the stage for a continued rise in home sales and home prices.”
Based on published national averages, the savings rate was 0.09% for the week of December 30. The one-year CD finished at 0.48%.