Korn/Ferry’s stock soars toward a record high after profit and sales beat expectations
Shares of Korn/Ferry International soared 9.9% toward a record high in premarket trade Wednesday, after the consulting company reported fiscal fourth-quarter profit and revenue that beat expectations, and provided an upbeat outlook for the current quarter. Net income for the quarter to April 30 rose to $41.2 million, or 73 cents a share, from $26.9 million, or 47 cents a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share of 80 cents was above the FactSet consensus of 70 cents. Revenue rose to $475.4 million from $406.1 million, beating the FactSet consensus of $469.2 million, as fee revenue growth was only partially offset by increased compensation and benefits. For the fiscal first quarter, the company expects fee revenue of $450 million to $470 million, above the FactSet consensus of $430 million. Separately, the company announced a rebranding, including going forward as soley Korn Ferry and ending its sub-brands such Futurestep, Hay Group and Lominger. The stock had rallied 37% year to date through Tuesday, while the S&P 500 had gained 4.2%.