Korn Ferry Q1 Earnings Beat Estimates, Guides Q2 EPS Above Consensus

Korn Ferry KFY reported first-quarter FY22 revenue growth of 70% year-over-year to $588.1 million, beating the consensus of $540.51 million. Fee revenue was $585.4 million, up 70% Y/Y and 5% Q/Q.
Adjusted EPS improved to $1.37 from $(0.19) in 1Q21, beating consensus of $1.07.
Operating income was $101.3 million versus $(43.8) million in 1Q21. The operating margin was 17.3% versus (12.7)% last year.
Adjusted EBITDA was $121.3 million, compared to $10.6 million in 1Q21, and margin expanded by 1,760 bps to 20.7%.
Revenue by line of business: Consulting $149 million (+49.5% Y/Y), Digital $80.7 million (+44.1% Y/Y) and Executive Search $217.7 million (+80% Y/Y).
The company declared a quarterly dividend of $0.12 per share, payable on October 15, 2021, to stockholders of record on September 23, 2021.
Q2 Outlook: Korn Ferry expects Fee revenue of $585 million - $615 million, and EPS of $1.30 - $1.44 vs. consensus of $0.92.
Price Action: KFY shares traded higher by 0.58% at $73.69 on the last check Wednesday.

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