Shares in Korn/Ferry International dipped Wednesday after the executive-search firm posted strong fourth quarter earnings but came in on the low end of Wall Street's expectations on its first quarter guidance.
Korn/Ferry posted net income for the quarter ended April 30 of $15.7 million (36 cents per share), a 16 percent increase over $13.5 million (30 cents) in the same period a year earlier in line with Wall Street's expectations, according to a Thomson Financial poll.
Sales for the Los Angeles-based firm rose 16 percent to $221 million, beating analysts' predictions of $211 million.
Korn/Ferry said the boost in sales was thanks in part to a 16 percent hike in fee revenue, which advanced to $208 million, as well as a favorable exchange rate given the Korn/Ferry does more than half of its business overseas.
Chief Executive Gary Burnison said the company now expects fiscal first-quarter earnings per share in the range of 28 cents to 32 cents with fee revenue of $190 million to $200 million.
Analysts surveyed by Thomson Financial forecast first-quarter earnings of 32 cents per share on revenue of $202 million based on current foreign exchange rates.
Shares in Korn/Ferry dropped 3.3 percent to $16.38 in early trading Wednesday.
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