Korn/Ferry International Improves 4Q Profit on Higher Fees

FOXBusiness

Helped by stronger fee revenues, Korn/Ferry International (NYSE:KFY) revealed a 76% jump in third-quarter, in-line with Wall Street estimates.

The Los Angeles-based company posted net income of $13.9 million, or 17 cents a share, compared with $7.9 million, or 11 cents, in the same quarter last year.

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Excluding tax benefits and restructuring charges, the company earned 30 cents a share, matching average analyst estimates polled by Thomson Reuters.

Revenue for the provider of executive recruitment and talent consulting was $194.1 million, up from $152.9 million a year ago, beating the Street’s view of $186.83 million. Sales were fueled by a 27% increase in fee revenues across all segments to $186.5 million from $146.8 million in the year-earlier period.

“I continue to be pleased with our performance,” said Korn/Ferry CEO Gary Burnison. “The past 90 days brought with it our seventh consecutive quarter of fee revenue growth. We have rebounded substantially faster than the industry.”

Looking ahead, the company said it sees fourth-quarter earnings in the range of 30 cents to 36 cents a share, with fee revenue between $183 million and $197 million. Wall Street is looking for earnings of 30 cents a share.