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Resources Connection Tops Wall Street Expectations with Quarterly Results

Irvine-based professional services company Resources Connection Inc. on Thursday reported quarterly results that topped what Wall Street was expecting.

For the three months through Aug. 28, Resources Connection reported a profit of $1.2 million, reversing a loss of $7.6 million a year earlier and topping the breakeven earnings expected on average by analysts.

Revenue came in at $123.7 million, up 5% from a year earlier and topping the $120.6 million expected by Wall Street.

Resources Connection provides accountants, lawyers and other professionals to companies on a project basis.

The company is seen as a barometer of the health of big corporations.

As the economy rebounds, corporations are expected to turn to consultants such as Resources Connection as a prelude to hiring their own professionals.

The company didn’t offer an outlook for the current quarter with its earnings release.

Analysts expect the company to report a profit of $2 million on sales of $130.8 million.

“We believe we can grow our business throughout the remainder of the year and increase the leverage of our business model,” Chief Operating Officer Tony Cherbak said.

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