UPDATE: Korn Ferry International (KFY) Tops Q4 EPS by 10c, Revenue Beats; Offers 1Q19 EPS/Revenue Outlook Above Consensus

(Updated - June 13, 2018 8:10 AM EDT)

Korn Ferry International (NYSE: KFY) reported Q4 EPS of $0.80, $0.10 better than the analyst estimate of $0.70. Revenue for the quarter came in at $488.4 million versus the consensus estimate of $458.38 million.

Highlights

• Korn Ferry reports record annual fee revenue of $1,767.2 million, an increase of almost 13% year-over-year.
• Korn Ferry reports record fee revenue of $475.4 million in Q4 FY\'18 an increase of 17% as compared to Q4 FY\'17.
• Operating income was $63.3 million in Q4 FY\'18 with an operating margin of 13.3%. Adjusted EBITDA was $74.6 million with an Adjusted EBITDA margin of 15.7%.
• Q4 FY\'18 diluted earnings per share was $0.73 compared to diluted earnings per share of $0.47 in Q4 FY\'17. Adjusted diluted earnings per share was $0.80 in Q4 FY\'18, compared to Adjusted diluted earnings per share in Q4 FY\'17 of $0.62.
• The Company declared a quarterly dividend of $0.10 per share on June 12, 2018 payable on July 13, 2018 to stockholders of record on June 26, 2018.

"I am pleased to report fee revenue of $475 million and strong profitability, with diluted earnings per share and Adjusted diluted earnings per share of $0.73 and $0.80 and Adjusted EBITDA of approximately $75 million during our recently completed fourth quarter. We achieved the highest fiscal year fee revenue in our firm\'s history – up 13% year over year," said Gary D. Burnison, CEO of Korn Ferry. "We've come a long way on our journey and I\'m excited about the future – to be the preeminent organizational consultancy. Today's Korn Ferry is all about synchronizing our clients' strategy and talent to help them drive superior performance. We are never more powerful than when we come together as one firm – to help companies design their organization, to offer expertise on how they compensate, develop and motivate their people and to find out who candidates are. Korn Ferry has the proven expertise to transform individuals, teams, even entire organizations. In the fiscal year ahead, we will continue to bring talent and organizational strategies to life and unlock the potential within global workforces."

Outlook

Q1 FY'19 fee revenue is expected to be in the range of $450 million and $470 million; and
Q1 FY'19 adjusted diluted earnings per share is likely to range between $0.67 to $0.75.

GUIDANCE:

Korn/Ferry International sees Q1 2019 EPS of $0.67-$0.75, versus the consensus of $0.66. Korn/Ferry International sees Q1 2019 revenue of $450-470 million, versus the consensus of $435.06 million.

For earnings history and earnings-related data on Korn/Ferry International (KFY) click here.

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