Korn Ferry Q2 Profit Down, Adj. EPS Tops View; Sees Q3 Earnings Below Market

Korn Ferry (KFY), an organizational consulting firm, reported Thursday that its second-quarter net income attributable to the company declined to $73.5 million from last year's $75.8 million.

Earnings per share were $1.38, same as last year.

Adjusted net income was $76.1 million or $1.43 per share, compared to $83.9 million or $1.53 per share a year ago.

On average, five analysts polled by Thomson Reuters expected earnings of $1.41 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenue grew to $735.7 million from $643.4 million a year ago. Analysts estimated revenues of $696.98 million for the quarter.

Looking ahead for the third quarter, the company expects earnings per share to range between $0.40 and $0.66, and adjusted earnings per share to be in the range from $0.88 to $1.00.

Analysts expect third-quarter earnings of $1.32 per share.

Third-quarter fee revenue is expected to be in the range of $660 million and $690 million.

The company further said that, in light of the ongoing uncertainty, it is in the process of developing a plan to reduce operating costs by $45 million to $55 million. The company expects to implement the Plan in the third quarter, but do not anticipate any meaningful run-rate savings to begin until the fourth quarter.

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