UPDATE: BMO Capital Markets Reiterates Market Perform Rating, Lowers PT on Resources Connection

In a report published Friday, BMO Capital Markets reiterated its Market Perform rating on Resources Connection

, but lowered its price target from $14.00 to $12.00. BMO Capital noted, “The EPS miss was both revenue and margin driven, with revenue of $141.2 million missing consensus of $144 million. While gross margins were in line with our estimate, SG&A expenses as a percentage of revenue were higher than we forecast, resulting in operating margins (excluding stock comp) of 9.3% vs. our 10.1% estimate. While the US segment was up 2.9% y/y, this was offset by a 16% drop in international (down 13.8% in c/c), as these markets remain very challenged. Management noted it paid consultants who lost work during Superstorm Sandy, resulting in roughly $1 million in lost revenue and $0.01 in EPS. We believe broad global economic headwinds continue to be RECN's biggest challenge, as management negotiates an environment of few growth opportunities.” Resources Connection closed on Thursday at $12.40.