Korn Ferry Q1 Earnings Beat Estimates On Strength In Diversification Strategy

Korn Ferry KFY reported first-quarter FY23 total revenue growth of 0.5% year-over-year to $706.26 million, beating the consensus of $684.93 million. 

Adjusted EPS of $0.99 beats the estimate of $0.91.

Fee revenue was $699.2 million, an increase of 0.5% Y/Y.

Operating income nearly halved to $56.8 million, with an operating margin of 8.1% versus 16.0% a year ago. Adjusted EBITDA was $95.7 million, with Adjusted EBITDA margin of 13.7% versus 19.0% the prior year.

Gary D. Burnison, the CEO, said, "Our diversification strategy continues to positively influence our results."

The company exited the quarter with cash and equivalents worth $591.7 million. The company's long-term debt as of quarter-end totaled $396.37 million.

Dividend: The company's quarterly dividend of $0.18 per share is payable on October 13 to stockholders of record on September 22.

Q2 Outlook: Korn Ferry expects Q2 FY24 adjusted EPS of $0.91 - $1.01, versus consensus of $0.96.

Price Action: KFY shares are trading lower by 1.07% to $49.33 on the last check Thursday.