Consulting firm Korn Ferry (KFY) reported on Wednesday a profit for the first quarter that edged up from last year, driven a 17 percent increase in fee revenue, partially offset by higher operating expenses. Adjusted earnings per share missed analysts' expectations by a penny, while quarterly revenues topped it. The company also provided guidance for the second quarter, in line with view.
For the first quarter, the company reported net income attributable to the company of $77.2 million or $1.46 per share, higher than $74.8 million or $1.38 per share in the prior-year quarter.
Excluding items, adjusted earnings for the quarter were $1.50 per share, compared to $1.37 per share in the year-ago quarter.
Total revenue for the quarter grew to $703.1 million from $588.1 million in the same quarter last year. Quarterly fee revenue increased 17 percent to $695.9 million from last year or 24 percent growth in constant currency.
On average, five analysts polled by Thomson Reuters expected the company to report earnings of $1.51 per share on revenues of $697.72 million for the quarter. Analysts' estimates typically exclude special items.
The increase in fee revenue was primarily drive by the continuing demand for the company's integrated service offerings and the acquisitions of Lucas Group and Patina, which are included in the new Professional Search & Interim segment.
Looking ahead to the second quarter, the company expects earnings in a range of $1.28 to $1.45 per share and adjusted earnings in a range of $1.34 to $1.50 per share on fee revenue between $678 million and $708 million.
The Street is looking for earnings of $1.50 per share on revenues of $691.96 million for the quarter.
On Tuesday, the company also declared a quarterly dividend of $0.15 per share, payable on October 14, 2022 to stockholders of record on September 23, 2022.
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