Korn Ferry Fourth-Quarter Sales Beat Estimates

Korn Ferry (KFY) released fresh guidance after markets closed on Thursday as it posted better-than-expected sales for its fiscal fourth quarter, which was supported by a single-digit increase in revenue from fees.

The Los Angeles-headquartered management consulting firm generated revenue of $502.5 million in the three months ended April 30. This was up from the $488.4 million registered in the corresponding quarter of the prior year and ahead of the consensus estimate of analysts’ polled by Capital IQ for $496.8 million.

Growth in revenue was supported by fee revenue rising to $490.8 million, up 3% from $475.4 million a year earlier, with the increase mainly attributed to organic growth in Korn Ferry’s RPO and Professional Search line of business of 20%.

Net income was $50.3 million, up from $41.2 million a year earlier, with the jump driven mainly from an increase in fee revenue, which was partially offset by an increase in compensation and benefits primarily due to a rise in average headcount and an increase in general and administrative expenses, the company said.

Adjusted earnings per share came in at $0.88, in line with analysts’ estimates and up from $0.80 a year earlier.

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