Shares Of Korn/Ferry Advance For A 2nd Day

HARTFORD, Conn. (AP) — Shares of Korn/Ferry International advanced again Thursday, a day after the staffing company's adjusted fiscal first-quarter results beat Wall Street estimates.

Two analysts offered conflicting views of the Los Angeles company's financial performance.

Tobey Sommer of Sun Trust Robinson Humphrey said management was conservative in a conference call with investor analysts, "but commentary on recent trends was positive."

The company cited some expected negative seasonal impact of the summer, but also conveyed "an overall sense of returning to economic normalcy across all functions and geographies," Sommer said in a note to investors.

Korn/Ferry's balance sheet is strong and its competitive position has improved, even in the recession, he said.

He reiterated a "Neutral" rating.

Credit Suisse analyst Kevin McVeigh said in a client note that Korn/Ferry's shares could be stuck within a narrow range until investors believe its fundamentals are improving. He said he does not believe this has occurred because Korn/Ferry has not resumed its buyback program despite $265 million of cash on its balance sheet.