Korn/Ferry International Inc.'s third quarter earnings met Wall Street forecasts but revenues exceeded expectations as the company showed strong growth in fees for its executive recruiting and staffing services.
The Los Angeles executive search and staffing company on Wednesday reported net income of $14 million (30 cents a share) for the quarter ended Jan. 31, compared with $7.9 million (17 cents) a year earlier. Revenue rose 38 percent to $194 million, with fee revenue up 27 percent.
Analysts surveyed by Thomson Reuters on average expected the company to report per-share profit of 30 cents on revenue of less than $187 million.
The company expects per-share profit of 30 to 36 cents in the current quarter on fee revenue of $183 million to $197 million. The Wall Street consensus was for earnings of 30 cents a share.
"Korn/Ferry's ongoing success, in an uneven global economic recovery and multi-speed labor cycle, is a testament to the steadfast efforts of our employees across the globe,” Chief Executive Gary D. Burnison said in a statement.
Shares were down 57 cents, or 2.6 percent to $21.44 in midday trading on the New York Stock Exchange.
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