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Earnings Review and Free Research Report: Korn/Ferry's Quarterly Earnings Rocketed 370%

Research Desk Line-up: Volt Information Sciences Post Earnings Coverage

LONDON, UK / ACCESSWIRE / July 5, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Korn/Ferry International (NYSE: KFY), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=KFY, following the Company's posting of its fourth quarter and fiscal 2017 financial results on June 20, 2017. The preeminent global people and organizational advisory firm surpassed top- and bottom-line expectations. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

http://protraderdaily.com/register/

Get more of our free earnings reports coverage from other constituents of the Staffing & Outsourcing Services industry. Pro-TD has currently selected Volt Information Sciences, Inc. (NYSE MKT: VISI) for due-diligence and potential coverage as the Company reported on June 09, 2017, its financial results for Q2 FY17 which ended on April 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on Volt Information Sciences when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on KFY; also brushing on VISI. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=KFY

http://protraderdaily.com/optin/?symbol=VISI

Earnings Reviewed

For Q4 FY17, Korn/Ferry reported total revenue of $419.6 million compared to revenue of $417.1 million in Q4 FY16. The Company reported record fee revenue of $406.1 million, an increase of 1.6%, or 3.2% on a constant currency basis, driven by organic growth in Futurestep and the North America region of Executive Search. Korn/Ferry's revenue numbers surpassed analysts' expectations of $405.3 million. During FY17, the Company reported record annual fee revenue of $1.57 billion, an increase of 21.2%, or 23.3% on a constant currency basis, driven by the Legacy Hay acquisition and organic growth in Futurestep.

For Q4 FY17, Korn/Ferry's operating margin was 8.1% compared to 1.2% in the year-ago same quarter. The increase in operating margin was primarily due to decreases in integration/acquisition costs, lower foreign currency loss relating to the devaluation of the Venezuelan currency in Q4 FY16 and a decrease in compensation expense.

Korn/Ferry's adjusted EBITDA margin was 14.8% Q4 FY17 compared to 13.5% in Q4 FY16. The Company's operating income was $32.8 million in Q4 FY17 with an operating margin of 8.1%.

Korn/Ferry reported Q4 FY17 net income of $26.9 million or $0.47 per share as compared to $5.8 million or $0.10 per diluted share in Q4 FY16. The Company's earnings, adjusted for one-time gains and costs, were $0.62 per share, ahead of Wall Street's expectations of $0.59 per share.

Segment Results

Korn/Ferry's Executive Search Data segment's fee revenue was $162.3 million in Q4 FY17, an increase 1.6%, or 3.1% on a constant currency basis, compared to Q4 FY16 revenue of $159.7 million. The overall increase in fee revenue was primarily attributable to higher fee revenue in its North America region.

During Q4 FY17, the segment's operating income was $30.6 million compared to $23.0 million in Q4 FY16. Operating margin was 18.8% in the reported quarter compared to 14.4% in the year ago same quarter. The Executive Search Data division's adjusted EBITDA was $34.2 million in Q4 FY17 with an adjusted EBITDA margin of 21.1% compared to $31.7 million and 19.9%, respectively, in Q4 FY16.

The Company's Hay Group segment's fee revenue was $185.1 million in Q4 FY17 compared to $187.7 million in Q4 FY16, a decrease of 1.4%, or a gain of 0.3% on a constant currency basis, compared to the year-ago same quarter. The segment's adjusted fee revenue was $185.1 million in the reported quarter compared to $192.8 million in the prior year's corresponding quarter, down 4.0%, or 2.4% on a constant currency basis, versus the year ago comparable quarter.

During Q4 FY17, the segment's operating income was $16.1 million, resulting in an operating margin of 8.7% in the reported quarter compared to 1.5% in the year-ago same quarter. Operating income increased by $13.2 million from operating income of $2.9 million in Q4 FY16. The Company's adjusted EBITDA was $33.0 million in Q4 FY17, an increase of $2.3 million compared to Q4 FY16, resulting in adjusted EBITDA margin of 17.8% in the reported quarter.

For Q4 FY17, Futurestep's fee revenue was $58.7 million, an increase of 11.8%, or 13.7% increase on a constant currency basis, compared to $52.5 million. The higher fee revenue was driven by an increase in recruitment process outsourcing and professional search of $3.5 million and $2.7 million, respectively, in Q4 FY17 compared to Q4 FY16. The segment's operating income was $8.1 million in Q4 FY17, an increase of $1.1 million compared to Q4 FY16 operating income of $7.0 million, with an operating margin of 13.9% in the reported quarter compared to 13.3% in the year-ago same quarter. During Q4 FY17, Futurestep's adjusted EBITDA was $8.8 million, an increase of $0.9 million compared to Q4 FY16.

Share Repurchase

Korn/Ferry continued to repurchase shares in the open market with cumulative share repurchases of 1.1 million since the Company began repurchasing in October 2016, representing a reduction of approximately 2% of outstanding shares of common stock. The Company declared a quarterly dividend of $0.10 per share on June 20, 2017, payable on July 14, 2017, to stockholders of record on June 30, 2017.

Outlook

For Q1 FY18, the Company is forecasting fee revenue to be in the range of $382 million and $400 million; and diluted earnings per share to range of $0.43 to $0.51. On a consolidated adjusted basis, the Company is estimating diluted earnings per share to be in the range of $0.48 to $0.56 for the upcoming quarter.

Stock Performance

On Monday, July 03, 2017, the stock closed the trading session at $34.82, slightly up 0.84% from its previous closing price of $34.53. A total volume of 353.72 thousand shares have exchanged hands, which was higher than the 3-month average volume of 341.10 thousand shares. Korn/Ferry's stock price skyrocketed 14.92% in the last three months, 18.31% in the past six months, and 66.21% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have surged 18.31%. The stock is trading at a PE ratio of 23.70 and has a dividend yield of 1.15%. At Monday's closing price, the stock's net capitalization stands at $1.99 billion.

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