Korn/Ferry International (NYSE:KFY) Issues Earnings Results

Korn/Ferry International (NYSE:KFY) issued its earnings results on Tuesday. The business services provider reported $1.40 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.37 by $0.03, FiscalAI reports. Korn/Ferry International had a net margin of 9.29% and a return on equity of 14.36%. The company had revenue of $768.26 million for the quarter, compared to analyst estimates of $743.35 million. During the same quarter last year, the firm earned $1.32 EPS. The company’s revenue for the quarter was up 6.7% on a year-over-year basis. Korn/Ferry International updated its Q1 2027 guidance to 1.320-1.380 EPS.

Here are the key takeaways from Korn/Ferry International’s conference call:

• Korn Ferry reported its fifth consecutive quarter of top-line growth, with Q4 fee revenue up 7% to $760 million and full-year fee revenue up 7% to about $2.9 billion.
• Profitability remained strong, with Q4 adjusted EBITDA up 7% to $130 million and margin at 17%, while full-year adjusted EBITDA reached nearly $500 million and adjusted EPS rose 8% to $5.28.
• Demand indicators improved across the business: ending estimated remaining fees grew 10% year over year to almost $1.9 billion, business referrals increased to 29.1% of revenue, and Marquee/Diamond account penetration stayed strong at 40%.
• Key solutions continued to perform well, including executive search growth of 7% for the quarter, professional search and interim up 14%, digital subscriptions up 10%, and consulting up 7%.
• The company is changing its external reporting structure starting in Q1 FY2027 to three regions—Americas, EMEA, and APAC—while also reporting solution data by search, talent and organizational solutions, and workforce solutions to better match how clients buy its services.

Korn/Ferry International Trading Up 6.2%

NYSE KFY opened at $71.97 on Wednesday. The firm has a market cap of $3.73 billion, a P/E ratio of 14.22 and a beta of 1.21. The company has a debt-to-equity ratio of 0.20, a current ratio of 2.01 and a quick ratio of 2.01. The stock’s 50-day moving average is $68.21 and its 200-day moving average is $66.17. Korn/Ferry International has a one year low of $58.95 and a one year high of $78.50.

Korn/Ferry International Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, July 31st. Shareholders of record on Monday, July 6th will be issued a $0.55 dividend. This represents a $2.20 annualized dividend and a dividend yield of 3.1%. The ex-dividend date is Monday, July 6th. Korn/Ferry International’s dividend payout ratio is 43.48%.

Hedge Funds Weigh In On Korn/Ferry International

Institutional investors and hedge funds have recently modified their holdings of the business. Wellington Management Group LLP raised its holdings in Korn/Ferry International by 48.3% during the 3rd quarter. Wellington Management Group LLP now owns 3,475,576 shares of the business services provider’s stock worth $243,221,000 after buying an additional 1,132,473 shares during the period. Dimensional Fund Advisors LP boosted its holdings in shares of Korn/Ferry International by 1.3% in the fourth quarter. Dimensional Fund Advisors LP now owns 2,880,716 shares of the business services provider’s stock valued at $190,188,000 after buying an additional 37,499 shares during the period. State Street Corp increased its position in shares of Korn/Ferry International by 1.6% during the fourth quarter. State Street Corp now owns 2,000,452 shares of the business services provider’s stock worth $132,933,000 after acquiring an additional 31,175 shares in the last quarter. Invesco Ltd. raised its holdings in shares of Korn/Ferry International by 1.1% during the third quarter. Invesco Ltd. now owns 1,493,922 shares of the business services provider’s stock worth $104,545,000 after acquiring an additional 16,519 shares during the period. Finally, Morgan Stanley raised its holdings in shares of Korn/Ferry International by 12.7% during the fourth quarter. Morgan Stanley now owns 933,946 shares of the business services provider’s stock worth $61,659,000 after acquiring an additional 104,898 shares during the period. 98.82% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

A number of equities analysts have issued reports on the company. UBS Group raised their target price on Korn/Ferry International from $65.00 to $70.00 and gave the stock a “neutral” rating in a report on Thursday, April 9th. Wall Street Zen upgraded shares of Korn/Ferry International from a “hold” rating to a “buy” rating in a research report on Sunday, March 1st. Truist Financial lifted their price objective on shares of Korn/Ferry International from $75.00 to $80.00 and gave the stock a “buy” rating in a research note on Tuesday, June 9th. Finally, Weiss Ratings raised shares of Korn/Ferry International from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Monday, June 1st. Three research analysts have rated the stock with a Buy rating and one has given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $74.67.

About Korn/Ferry International

Korn Ferry International is a global organizational consulting firm that partners with clients to design optimal structures, roles and responsibilities. The company’s core offerings include executive search, talent acquisition, leadership development and succession planning. By blending deep industry expertise with data-driven insights, Korn Ferry helps organizations identify, assess and develop executives and high-potential talent for critical roles.

Since its founding in 1969 and with headquarters in Los Angeles, Korn Ferry has expanded its presence to more than 50 offices across North America, Europe, Asia Pacific and Latin America.