KFY Earnings Prediction
The chart below shows how KFY performed 10 days before and after its earnings report, based on data from the past quarters. Typically, KFY sees a +1.19% change in stock price 10 days leading up to the earnings, and a -0.99% change 10 days following the report. On the earnings day itself, the stock moves by +0.96%. This data can give you a slight idea of what to expect for the next quarter's release.
KFY Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
668.73M
0.01%
-0.84%
Gross Margin
85.27%
-0.55%
-2.54%
Operating Margin
13.03%
47.40%
-4.96%
Net Margin
8.87%
-0.67%
-4.00%
EPS
1.10
-2.65%
-3.51%
No Data Available
KFY Earnings Analysis
Korn Ferry Corporation (KFY.N) Earnings Conference Call
Positive
Earnings Per Share Beat: Korn Ferry reported an EPS of $1.19, exceeding expectations of $1.13.
New Business Bookings Growth: Total firm new business bookings increased by 13%, driven by the Americas and EMEA regions.
EBITDA Growth and Margin Expansion: Adjusted EBITDA increased by 13% year-over-year to $114 million, with an adjusted EBITDA margin of 17.1%, up 190 basis points year-over-year.
Fee Revenue Increase: Fee revenue for the third quarter was $669 million, a 2% year-over-year increase at constant currency.
Client Engagement Growth: Marquee and diamond accounts now represent 39% of total consolidated fee revenue, indicating strong client engagement.
Quarterly Dividend Increase: The company is increasing its quarterly dividend by 30%, marking the sixth increase in the last five years.
Consulting Business Growth: Consulting new business grew by 3% at constant currency, with larger engagements representing 41% of new business.
Executive Search Revenue Growth: Executive Search fee revenue grew by 4% at constant currency, with consultant productivity increasing by 7% year-over-year.
RPO Fee Revenue Growth: RPO fee revenue grew by 6% to $85 million, with fee revenue under contract sharply higher at $752 million.
Q4 Fee Revenue Projection: The company expects fee revenue in Q4 to range from $680 million to $700 million, indicating continued growth.
Negative
Consulting Industry Challenges: The macroeconomic environment for consulting services has been less than ideal for the last eight quarters, indicating ongoing challenges in the industry.
Modest Fee Revenue Growth: Despite a 2% year-over-year increase in fee revenue, the growth is modest and may not meet investor expectations for more substantial gains.
Limited Core Growth: New business excluding RPO was only up 1% at constant currency, suggesting limited growth in core areas outside of recent acquisitions.
Labor Market Imbalance: The company is facing a supply-demand imbalance in the labor market, which may hinder future growth and client engagements.
Adjusted EBITDA Margin Stagnation: While adjusted EBITDA margins increased, the overall adjusted EBITDA margin for the company is projected to remain around 16.8% to 17%, indicating potential stagnation in profitability growth.
Macroeconomic Uncertainty Impact: The company has acknowledged the uncertainty in the macroeconomic environment, which could impact future performance and investor confidence.
KFY FAQs
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KFY Earning Call Sentiment
Korn Ferry (NYSE:KFY) Q3 2025 Earnings Call Transcript
KFY.N
-0.69%Positive
The earnings call presents strong financial performance with increased EPS, revenue, and margins across various segments, alongside a substantial shareholder return plan including dividends and share repurchases. The Q&A highlights successful productivity strategies and strong new business growth, despite some challenges in the digital segment. The positive outlook, especially in executive search, and a commitment to margin expansion suggest a likely stock price increase. Given the market cap of $3.43 billion, a positive reaction of 2% to 8% is anticipated.
