Korn Ferry (NYSE: KFY) reported Q3 EPS of $0.94, $0.44 better than the analyst estimate of $0.50. Revenue for the quarter came in at $477.9 million versus the consensus estimate of $424.25 million.

GUIDANCE:

Korn Ferry sees Q4 2021 EPS of $0.95-$1.05, versus the consensus of $0.54. Korn Ferry sees Q4 2021 revenue of $475-500 million, versus the consensus of $434.77 million.

FY’21 Third Quarter Highlights

• Fee revenue of $475.4 million in Q3 FY’21, a sequential increase of 9% from Q2 FY’21.
• Record net income attributable to Korn Ferry of $51.3 million in Q3 FY’21.
• Operating income and Adjusted EBITDA were both all-time highs at $65.2 million (operating margin of 13.7%) and $96.7 million (Adjusted EBITDA margin of 20.3%), respectively.
• Highest diluted earnings per share and adjusted diluted earnings per share to date at $0.94 and $0.95, respectively, for Q3 FY’21.
• Repurchased 0.2 million shares or $7.6 million of stock during the quarter consistent with disciplined capital allocation approach.
• Declared a quarterly dividend of $0.10 per share on February 21, 2021 payable on April 15, 2021 to stockholders of record on March 10, 2021.
• Revenue and earnings guidance being reinstated starting with Q4 FY'21

“Our performance for the fiscal third quarter demonstrates the resilience of our business and continued extension of our brand, with strong sequential fee revenue growth of 9% and our earnings and profitability reaching record highs,” said Gary D. Burnison, CEO, Korn Ferry. “I am incredibly proud of the tireless commitment that all our Korn Ferry colleagues have shown in helping our clients re-imagine their organizational structures, recruit and retain talent and develop their people in the face of extraordinary challenges.”

“In a post-pandemic world, there will continue to be heightened demand for transformational consulting skills and expertise,” Burnison continued. “The steps we have taken to evolve our business into a more efficient, profitable, growth-oriented organization have positioned Korn Ferry to provide our clients with unparalleled expertise, data, and innovation support. With people at the center of our strategy, we are achieving our growth objectives, delivering long-term value creation to shareholders and establishing Korn Ferry as the preeminent global organizational consultancy.”

Assuming no new major pandemic lockdowns, worldwide economic conditions, financial markets and foreign exchange rates remain steady, on a consolidated basis:

• Q4 FY’21 fee revenue is expected to be in the range of $475 million and $500 million; and
• Q4 FY’21 diluted earnings per share is expected to range between $0.95 to $1.05.

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