Korn/Ferry International Inc. reported a decline in earnings Thursday but the Los Angeles executive recruitment firm beat Wall Street expectations.
Korn/Ferry reported net income of $14.7 million (33 cents per share) for the third quarter ended Jan. 31, an 11 percent fall from $16.6 million (37 cents) for the same period a year earlier. Wall Street analysts had expected earnings of 32 cents, according to a poll by Thompson Financial. The company said a one-time gain on an investment accounted 6 cents of earnings.
Revenue rose 27 percent to $174 million largely because of an increase in fees, also beating estimates of $163 million.
All segments showed stronger fee revenue, Korn/Ferrry said, with the average fee billed per executive up 14 percent. Foreign exchange rates also boosted fee revenue by about $6 million for the quarter.
Shares in Korn/Ferry were up 11 cents to $22.93 in afternoon trading Thursday on the New York Stock Exchange.
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