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Korn Ferry shares jump 4% on strong earnings and upbeat guidance

EditorRachael Rajan
Published 13-06-2024, 04:46 pm
© Reuters.

LOS ANGELES - Korn Ferry (NYSE:KFY), the global organizational consulting firm, reported fourth-quarter earnings of $1.26 per share, surpassing analyst expectations by $0.13.

The company's revenue for the quarter reached $690.8 million, also beating the consensus estimate of $688 million. The positive earnings news, coupled with guidance for the first quarter of 2025 that exceeds analyst forecasts, has led to a 4.5% surge in the company's stock.

In the fourth quarter, Korn Ferry experienced a year-over-year (YoY) decrease in fee revenue by 5%, both in actual and constant currency terms. Despite this, the company's adjusted earnings per share (EPS) showed an increase, with the fourth quarter adjusted EPS at $1.26, reflecting the firm's ability to manage profitability even in a challenging economic environment.

Looking ahead, Korn Ferry provided guidance for the first quarter of 2025 with an EPS range of $1.07 to $1.17, which is above the analyst consensus of $1.06. The revenue forecast for the same period is set between $655 million and $675 million, which falls short of the consensus estimate of $686 million. The midpoint of this guidance range, $665 million, is below the analyst estimate, indicating a cautious outlook on revenue growth.

Gary D. Burnison, CEO of Korn Ferry, expressed satisfaction with the company's performance, noting the fourth consecutive quarter of improved adjusted EBITDA margin, which reached 16.3%. Burnison attributed the company's success to its diversified offerings, particularly in Consulting and Digital, and the firm's strategic response to the current economic climate.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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