Korn/Ferry International said Tuesday that its first-quarter net income fell 7 percent, but the results exceeded analysts' estimates.
The Los Angeles staffing company reported net income dropped to $15.9 million, or 36 cents per share for the quarter ended July 31, compared with $17.1 million (36 cents) a year ago. The per-share results were the same due to fewer shares outstanding. Analysts polled by Thomson Reuters on average had predicted earnings of 30 cents per share.
Revenue rose 11 percent to $218 million from $196 million, helped by higher fee revenue. Total operating expense increased 13 percent to $194. Analysts predicted revenue of $207 million.
"In the face of continued economic uncertainty, we believe our solid first quarter results reflect the long-term needs of our clients to attract and develop talent," said Chief Executive Gary Burnison in a statement.
The company said it expects fiscal second-quarter earnings to come in within the range of analysts' estimates, with net income between 26 cents and 32 cents per share, and fee revenue between $185 million and $200 million. Analysts are expecting net income of between 24 cents and 34 cents.
Korn/Ferry shares closed up $1.21, or 7 percent, to $18.62 on the New York Stock Exchange.
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