Shares of executive recruitment company Korn/Ferry International ( KFY) were rallying after the company said it swung to a third-quarter profit that easily beat the Wall Street consensus, citing an increase in fee revenue.

The company earned $3.9 million, or 10 cents a share, compared with a loss of $2.6 million, or 7 cents a share, a year ago. Analysts had been expecting 5 cents a share.

"With the strength in corporate profits and overall economic expansion, we continue to witness a recovery in the executive recruitment business," the company said in a statement.

The shares were recently up $1.28, or 10.5%, to $13.48.

Operating income was $6.2 million, compared with $6 million a year ago.

Total revenue was $86.7 million, up from $80.7 million last year. Fee revenue increased 7.8% to $81.4 million, Korn/Ferry said. The company cited an improvement in the number of new engagements opened across all regions. Additionally, exchange rates positively impacted fee revenue by $4.3 million.

Korn/Ferry expects fourth-quarter earnings to be 10 cents to 16 cents a share with fee revenue of $81 million to $85 million, assuming constant foreign exchange rates. Analysts are calling for 10 cents a share.

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