Korn/Ferry International said it moved from a loss to a profit in its fiscal fourth quarter as its executive recruitment business continued to rebound from the recession.
After the Monday markets closed, the Los Angeles staffing company reported net income of $8.9 million (19 cents per share) for the quarter ended April 30, compared with a loss of $17.2 million (-40 cents) a year earlier. Revenue jumped 55 percent to $177 million.
Analysts surveyed by Thomson Reuters on average expected the company to report earnings of 13 cents per share on revenue of more than $155 million.
Fee revenue improved around the world, with a 45 rise in the number of billed executive recruitment engagements and 13 percent increase in the average fee per engagement. The company said it also benefited from the June 2009 acquisition of Whitehead Mann, a prominent United Kingdom headhunting company.
In addition, the year-ago quarter had restructuring charges of more than $25 million as the company adjusted to lower hiring during the recession. The company had only $100,000 restructuring charges in the most recent quarter.
"Over the past year we remained focused on preserving our brand, positioning our company for long-term growth and remaining close to clients," Chief Executive Gary Burnison said in a statement.
For the first quarter, the company expects earnings of 15 cents to 25 cents a share on revenue of $155 million to $175 million. Analysts on average are expecting per-share earnings of 17 cents on revenue of $154 million.
Shares were up $1.87, or 13 percent, to $15.80 in midday trading on the New York Stock Exchange.
For reprint and licensing requests for this article, CLICK HERE.
Stories You May Also Be Interested In
- Korn/Ferry Reports Loss on Revenue Drop, Charges
- Korn/Ferry Earnings Better Than Expected
- Korn/Ferry’s Quarter Exceeds Expectations
- Korn/Ferry Swings to Profit
- Korn Ferry Shares Gain Despite Operating Losses
- Korn/Ferry Reports Tepid Earnings
- Korn/Ferry Net Income Surpasses Estimates
- Profit Gains at Korn/Ferry