Korn/Ferry International shares rose on Wednesday after the staffing company reported quarterly profits, boosted by higher fee revenue and improved margins, that beat both Wall Street’s and its own forecasts.
The Los Angeles global executive search firm reported fiscal fourth quarter net income of $20.3 million (43 cents a share) for the quarter ended April 30, compared with net income of $8.9 million (19 cents) a year earlier. Revenue rose 16 percent to nearly $206 million, with fee revenue up 17 percent.
Excluding tax adjustments, earnings were 39 cents a share. Analysts surveyed by Thomson Reuters on average expected per-share profit of 32 cents on revenue of $191 million. The company itself had forecast per-share profit of between 30 cents to 36 cents a share.
Operating margins rose from 8.1 percent to 13.3 percent.
“I am enormously proud of the Korn/Ferry organization,” Chief Executive Gary Burnison said in a statement. “Once again, our growth was driven by the strength of our differentiated strategy.”
For current quarter, Korn/Ferry projects per-share earnings of 30 cents to 36 cents, while the Wall Street consensus is 31 cents.
Shares were up $1.77, or 8 percent, to $23.29 in midday trading on the New York Stock Exchange.
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