Korn Ferry Shares Climb After Beating Earnings Estimates

Shares of Korn Ferry were higher Monday after the company posted better than expected fiscal second-quarter results.
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Shares of Korn Ferry  (KFY) - Get Report rose Monday after the management consulting firm posted fiscal second-quarter earnings that beat analyst estimates.

Shares of the company jumped 7.25 percentage points to $41.00 at the opening of trading Monday.

The Los Angeles company posted a 35% drop in earnings to $28.8 million or 51 cents a share compared to $42.8 million or 78 cents a share in the same period a year ago.

Revenue for the quarter declined 14.2% to $127.1 million from $148.2 million. A survey of analysts by FactSet produced consensus estimates of adjusted earnings of a nickel a share on revenue of $379.7 million.

"I'm not only encouraged by the financial results but extremely proud of all that has been accomplished by our Korn Ferry colleagues to help our business rebound so dramatically," said Chief Executive Gary D. Burnison in a statement.

 "Our clients have responded, and our colleagues have been resilient through a year that none of us have experienced in our lifetimes," he added.

"We had a sharp improvement in earnings and profitability with net income attributable to Korn Ferry of $28 million with an operating margin of 11.1% and $66 million of adjusted EBITDA and a 15.2% adjusted EBITDA margin," Burnison added.

The Korn Ferry earnings exclude restructuring charges of $1.7 million, or 3 cents a share, due to the coronavirus pandemic.

The company said it will not issue any specific revenue or earnings guidance for the third quarter. "We plan to reassess the suspension of our guidance once we are comfortable that the coronavirus uncertainties have largely passed."

Korn Ferry was up by 3.97 percentage points at the last check of the stock Monday.