Korn Ferry Q2 Profit Surges - Update

(RTTNews) - Executive-search company Korn/Ferry International (KFY), Wednesday reported a surge in profit for the second quarter, driven largely revenue growth. Both earnings and revenues for the quarter came in ahead of Wall Street expectations.

Los Angeles, California-based Korn/Ferry's second-quarter profit surged to $18.8 million or $0.38 per share from $1.2 million or $0.03 per share in the same period last year.

Excluding items, adjusted net income for the quarter improved to $20.0 million or $0.41 per share from $11.8 million or $0.25 per share last year. On average, five analysts polled by Thomson Reuters expected earnings of $0.34 per share for the quarter. Analysts' estimates typically exclude special items.

Korn/Ferry's revenue for the second quarter rose 20 percent to $246.2 million from $204.8 million last year. Four analysts had a consensus revenue estimate of $234.19 million.

Revenue growth was driven largely by increases in fee revenue at Leadership & Talent Consulting and Executive recruitment divisions, as well as the acquisition of PDI Ninth House and Global Novations. Total fee revenues improved 23 percent to $238.0 million.

Operating margin improved to 9.7 percent from 1.4 percent last year.

Looking ahead to the third quarter, the company expects earnings of $0.30 to $0.38 per share, with fee revenues of $221 million to $237 million. Analysts currently expect earnings of $0.34 per share on revenues of $233.18 million.

KFY closed Wednesday's trading at $22.50, down $0.44 or 1.92%, on the New York Stock Exchange. The stock however gained $1.00 or 4.44% in after hours trade.