Latest news with #KFY
Yahoo
19-06-2025
- Business
- Yahoo
KFY Q1 Deep Dive: Executive Search Growth, Digital Expansion, and Outlook Amid Macro Uncertainty
Organizational consulting firm Korn Ferry (NYSE:KFY) beat Wall Street's revenue expectations in Q1 CY2025, with sales up 2.8% year on year to $719.8 million. On the other hand, next quarter's revenue guidance of $685 million was less impressive, coming in 1% below analysts' estimates. Its non-GAAP profit of $1.32 per share was 4.7% above analysts' consensus estimates. Is now the time to buy KFY? Find out in our full research report (it's free). Revenue: $719.8 million vs analyst estimates of $699 million (2.8% year-on-year growth, 3% beat) Adjusted EPS: $1.32 vs analyst estimates of $1.26 (4.7% beat) Adjusted EBITDA: $121.1 million vs analyst estimates of $116.8 million (16.8% margin, 3.7% beat) Revenue Guidance for Q2 CY2025 is $685 million at the midpoint, below analyst estimates of $691.8 million Adjusted EPS guidance for Q2 CY2025 is $1.22 at the midpoint, above analyst estimates of $1.20 Operating Margin: 14.5%, up from 11.9% in the same quarter last year Market Capitalization: $3.45 billion Korn Ferry's first quarter results were met with a positive market response, as the company delivered revenue and profit above Wall Street's expectations. Management credited the quarter's momentum to strong execution in executive search, where demand for leadership transitions remained robust despite ongoing economic headwinds. CEO Gary Burnison pointed to new client wins across industrial, semiconductor, and financial services sectors, emphasizing the firm's ability to deliver multi-year, large-scale engagements. The company's strategic focus on cross-solution selling also resulted in higher repeat business, with 77% of clients purchasing two or more solutions, which Burnison described as 'a growth foundation for tomorrow.' Looking ahead, Korn Ferry's guidance reflects both optimism in its core offerings and caution about the broader macro environment. Management cited the continued rollout of its TalentSuite digital platform and deeper integration of data analytics as key levers for future growth. However, CEO Gary Burnison acknowledged persistent cost pressures and uncertain business sentiment, noting, 'There's always uncertainty. That's the only thing that's certain.' The company expects ongoing investments in technology and organizational consulting to drive client engagement, but recognizes that longer sales cycles and a challenging labor market could temper near-term results. The focus remains on scaling digital solutions and expanding large, multi-year engagements. Management attributed quarterly growth to robust executive search demand, the expansion of digital solutions, and an increased share of large, multi-year client contracts. Executive search momentum: Korn Ferry experienced double-digit growth in executive search, driven by demographic shifts, leadership turnover, and clients' need for new skills at the top. Management emphasized that both North America and international markets contributed to this trend, highlighting the impact of 'Peak 65' demographics and changing corporate leadership needs. Expansion of digital offerings: The company continued to invest in its TalentSuite platform, releasing its fourth major update in the last year. Management described the platform's goal as creating a seamless user experience across hiring, development, and compensation, aiming to deepen client integration and improve recurring revenue. Longer, larger consulting engagements: Consulting business growth was supported by a higher proportion of large, multi-year contracts, some spanning three to five years. Management noted that these transformative engagements are becoming more common, increasing revenue durability but extending implementation timelines. Cross-solution client penetration: Repeat business remained strong, with 26% of fee revenue coming from referrals between solution areas and nearly 40% of revenue from Marquee and Diamond accounts. This cross-selling strategy is central to Korn Ferry's efforts to build resilient client relationships and diversify revenue streams. Geographic diversification: EMEA (Europe, Middle East, and Africa) and APAC (Asia-Pacific) regions posted solid growth in executive search and recruitment process outsourcing (RPO) services, while the Americas remained stable. Management believes geographic diversity helps offset local market volatility. Korn Ferry's outlook is shaped by a mix of expanding digital offerings, macroeconomic headwinds, and a strategic push toward long-term client contracts. Digital adoption as growth lever: Management expects continued rollout and integration of TalentSuite to drive higher margins and recurring revenue, especially as more clients bundle consulting and digital services. The company anticipates that ecosystem partnerships and seamless user experiences will differentiate its offering in a crowded market. Macroeconomic and labor market pressures: Korn Ferry remains cautious about the broader economic environment, citing cost of living challenges, slow labor market turnover, and restrained corporate spending. CEO Gary Burnison highlighted that 'growth is elusive' and companies are focused on cost control, which may prolong sales cycles and flatten near-term growth across consulting segments. Shift to multi-year engagements: The pivot toward larger, multi-year contracts is expected to provide revenue stability but may result in slower short-term revenue recognition. Management believes this approach will strengthen client relationships and improve long-term profitability, but acknowledges the trade-off with near-term growth visibility. As we look to upcoming quarters, the StockStory team will monitor (1) adoption rates and monetization progress for the TalentSuite digital platform, (2) the pace of multi-year consulting engagement wins and their impact on revenue stability, and (3) the company's ability to navigate macroeconomic headwinds, including labor market dynamics and corporate cost pressures. Progress in cross-selling and international expansion will also be key signposts for sustained growth. Korn Ferry currently trades at $71.07, up from $66.71 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it's free). Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
Yahoo
18-06-2025
- Business
- Yahoo
Korn Ferry Beats Fourth-Quarter Views, Issues Upbeat Outlook
Korn Ferry (KFY) shares surged intraday Wednesday as its fourth-quarter results surpassed analysts' Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
17-06-2025
- Business
- Yahoo
Korn Ferry (KFY) Q1 Earnings: What To Expect
Organizational consulting firm Korn Ferry (NYSE:KFY) will be reporting results this Wednesday morning. Here's what to expect. Korn Ferry beat analysts' revenue expectations by 2.8% last quarter, reporting revenues of $676.5 million, flat year on year. It was a satisfactory quarter for the company, with a solid beat of analysts' EPS guidance for next quarter estimates but revenue guidance for next quarter slightly missing analysts' expectations. Is Korn Ferry a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Korn Ferry's revenue to be flat year on year at $699 million, improving from the 5.2% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.26 per share. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Korn Ferry has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 2.2% on average. Looking at Korn Ferry's peers in the professional staffing & hr solutions segment, some have already reported their Q1 results, giving us a hint as to what we can expect. First Advantage delivered year-on-year revenue growth of 109%, beating analysts' expectations by 2.9%, and Barrett reported revenues up 10.1%, topping estimates by 2.3%. First Advantage traded up 17.9% following the results while Barrett's stock price was unchanged. Read our full analysis of First Advantage's results here and Barrett's results here. Investors in the professional staffing & hr solutions segment have had steady hands going into earnings, with share prices flat over the last month. Korn Ferry is down 1.3% during the same time and is heading into earnings with an average analyst price target of $78.50 (compared to the current share price of $67.81). Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
17-06-2025
- Business
- Yahoo
Korn Ferry (KFY) Q1 Earnings: What To Expect
Organizational consulting firm Korn Ferry (NYSE:KFY) will be reporting results this Wednesday morning. Here's what to expect. Korn Ferry beat analysts' revenue expectations by 2.8% last quarter, reporting revenues of $676.5 million, flat year on year. It was a satisfactory quarter for the company, with a solid beat of analysts' EPS guidance for next quarter estimates but revenue guidance for next quarter slightly missing analysts' expectations. Is Korn Ferry a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Korn Ferry's revenue to be flat year on year at $699 million, improving from the 5.2% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.26 per share. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Korn Ferry has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 2.2% on average. Looking at Korn Ferry's peers in the professional staffing & hr solutions segment, some have already reported their Q1 results, giving us a hint as to what we can expect. First Advantage delivered year-on-year revenue growth of 109%, beating analysts' expectations by 2.9%, and Barrett reported revenues up 10.1%, topping estimates by 2.3%. First Advantage traded up 17.9% following the results while Barrett's stock price was unchanged. Read our full analysis of First Advantage's results here and Barrett's results here. Investors in the professional staffing & hr solutions segment have had steady hands going into earnings, with share prices flat over the last month. Korn Ferry is down 1.3% during the same time and is heading into earnings with an average analyst price target of $78.50 (compared to the current share price of $67.81). Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
Yahoo
13-05-2025
- Business
- Yahoo
3 Reasons to Sell KFY and 1 Stock to Buy Instead
Over the last six months, Korn Ferry shares have sunk to $68.02, producing a disappointing 13% loss - worse than the S&P 500's 2.4% drop. This might have investors contemplating their next move. Is there a buying opportunity in Korn Ferry, or does it present a risk to your portfolio? Get the full stock story straight from our expert analysts, it's free. Even with the cheaper entry price, we're sitting this one out for now. Here are three reasons why you should be careful with KFY and a stock we'd rather own. Long-term growth is the most important, but within business services, a stretched historical view may miss new innovations or demand cycles. Korn Ferry's recent performance marks a sharp pivot from its five-year trend as its revenue has shown annualized declines of 2% over the last two years. Forecasted revenues by Wall Street analysts signal a company's potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite. Over the next 12 months, sell-side analysts expect Korn Ferry's revenue to rise by 1.6%. While this projection indicates its newer products and services will spur better top-line performance, it is still below the sector average. Although long-term earnings trends give us the big picture, we like to analyze EPS over a shorter period to see if we are missing a change in the business. Sadly for Korn Ferry, its EPS declined by more than its revenue over the last two years, dropping 8.1%. This tells us the company struggled to adjust to shrinking demand. Korn Ferry falls short of our quality standards. Following the recent decline, the stock trades at 13.3× forward P/E (or $68.02 per share). This valuation is reasonable, but the company's shaky fundamentals present too much downside risk. There are superior stocks to buy right now. Let us point you toward one of our top software and edge computing picks. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
