Korn Ferry Shares Gain On Q3 Beat, Solid Q4 Outlook

Korn Ferry KFY reported third-quarter FY22 total revenue growth of 43.3% year-over-year to $685 million, beating the consensus of $651.06 million.
Fee revenue of $680.7 million increased 43% Y/Y and 6% sequentially.
Fee revenue by line of business: Consulting $162.9 million (+19.5% Y/Y), Digital $90.19 million (+19% Y/Y), Executive Search $238.9 million (+42.2% Y/Y) and RPO and Professional Search $188.66 million (+98.2% Y/Y).
Adjusted EPS improved to $1.59 from $0.95 in 3Q21, beating the consensus of $1.48.
Operating income improved to $126.3 million versus $65.2 million in 3Q21 and the margin expanded by 490 bps to 18.6%.
Adjusted EBITDA increased 43% Y/Y to $138.3 million, and the margin was flat at 20.3%.
Dividend: The company declared a quarterly dividend of $0.12 per share payable on April 14, 2022, to stockholders of record on March 28, 2022.
Korn Ferry repurchased 304,500 shares during the quarter for $22.1 million.
Q4 Outlook: Korn Ferry expects fee revenue to be $670 million - $690 million, and EPS of $1.44 - $1.60.
It expects an adjusted EPS of $1.49 - $1.63, above the consensus of $1.37.
Price Action: KFY shares traded higher by 5.40% at $64.31 during the market session on Wednesday.

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