Korn/Ferry Results Top Estimate

(RTTNews) - Korn/Ferry International (KFY), a provider of talent management solutions, Tuesday reported a higher second-quarter, led by an increase in fee revenues and operating margin. Both earnings and revenues for the quarter topped Wall Street estimates.

The company provided earnings outlook for the current quarter, the midpoint of which is indicated to come in line with Street estimats, while its revenue guidance appears weak.

The Los Angeles-based company posted quarterly net earnings of $25.4 million or $0.51 per share compared with $18.8 million or $0.38 per share last year.

Analysts polled by Thomson Reuters estimated earnings of $0.45 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenues for the quarter were $264.7 million compared with $246.2 million in the prior year.

Fee revenues for the quarter climbed to $255.7 million from $238 million a year ago. Analysts estimated revenues of $251.4 million for the quarter.

Operating margin for the quarter rose to 13.5 percent from 9.7 percent last year.

For the third quarter, the company expects earnings of $0.43 to $0.49 per share on fee revenues of $241 million to $251 million. Analysts expect earnings of $0.46 per share on revenues of $255.6 million.