1st quarter fiscal 2020 result study: Korn Ferry (NYSE: KFY)

Korn Ferry (NYSE: KFY) spotted trading -21.94% off 52-week high price. On the other end, the stock has been noted 12.58% away from the low price over the last 52-weeks. The stock changed -1.02% to recent value of $38.67. The stock transacted 483938 shares during most recent day however it has an average volume of 431.91K shares. The company has 55.27M of outstanding shares and 55.18M shares were floated in the market.

Korn Ferry (NYSE: KFY), recently reported first quarter fee revenue of $484.5M with diluted earnings per share of $0.76.

Selected Financial Results

Fee revenue was $484.5M in Q1 FY’20, a raise of 4% (7% increase on a constant currency basis) contrast to Q1 FY’19.  The increase in fee revenue was Because of growth in RPO and Professional Search.

Net income attributable to Korn Ferry was $43.0M in Q1 FY’20 as contrast to a loss of $38.6M in Q1 FY’19.  The increase in net income attributable to Korn Ferry resulted from a decrease in general and administrative expenses mainly Because of the $106.6M trade name write-offs in Q1 FY’19, partially offset by a raise in income tax provision in Q1 FY’20.

Results by Section

Selected Advisory Data

Fee revenue was $195.5M in Q1 FY’20 contrast to $195.4M in Q1 FY’19, flat as stated and up 3% on a constant currency basis.

Operating income was $25.8M in Q1 FY’20 with an operating margin of 13.2% contrast to an operating loss of $83.1M and an operating margin of (42.5%) in the year-before quarter.  The change of $108.9M from the operating loss in the year-before quarter to operating income in the current quarter was primarily Because of the trade name write-offs in Q1 FY’19 of $106.6M.

Adjusted EBITDA was $34.6M in Q1 FY’20 with an Adjusted EBITDA margin of 17.7% contrast to $34.5M and 17.7%, respectively, in the year-before quarter.

Selected Executive Search Data

Fee revenue was $193.2M and $192.9M in Q1 FY’20 and Q1 FY’19, respectively, flat as stated and up 2% on a constant currency basis.

Operating income was $45.6M in Q1 FY’20 contrast to $40.9M in Q1 FY’19.  Operating margin was 23.6% in Q1 FY’20 contrast to 21.2% in the year-before quarter.

EBITDA was $48.9M in Q1 FY’20 with an EBITDA margin of 25.3% contrast to $46.8M and 24.2%, respectively, in the year-before quarter.

Selected RPO and Professional Search Data

Fee revenue was $95.8M in Q1 FY’20, a raise of $18.5M or 24% (27% increase on a constant currency basis), contrast to the year-before quarter.  The higher fee revenue was primarily driven by a raise in fee revenue in recruitment process outsourcing and professional search of $11.9M and $6.6M, respectively, in Q1 FY’20 contrast to Q1 FY’19.

Operating income was $15.0M in Q1 FY’20, a raise of $3.4M contrast to Q1 FY’19 operating income of $11.6M.  Operating margin was 15.7% in the current quarter contrast to 15.1% in the year-before quarter.

EBITDA was $16.1M during Q1 FY’20, a raise of $3.6M contrast to Q1 FY’19.  EBITDA margin was 16.8% in Q1 FY’20 and 16.2% in Q1 FY’19.

Outlook

Assuming worldwide economic conditions, financial markets and foreign exchange rates remain steady, on a consolidated basis:

  • Q2 FY’20 fee revenue is predictable to be in the range of $485M and $505M; and
  • Q2 FY’20 diluted earnings per share is likely to range between $0.76 to $0.84.

Its earnings per share (EPS) expected to touch remained -29.70% for this year while earning per share for the next 5-years is expected to reach at 15.00%. KFY has a gross margin of 93.90%. According to the most recent quarter its current ratio was 2.4 that represent company’s ability to meet its current financial obligations. The price moved ahead of 5.18% from the mean of 20 days, 3.42% from mean of 50 days SMA and performed -8.81% from mean of 200 days price. Company’s performance for the week was 4.37%, 8.93% for month and YTD performance remained -2.20%.

Clint Lewis

Clint Lewis –Business I am Clint Lewis I have finished my four-year college education in English writing and I hold a master’s degree in Business from Stanford University. Writing about business and finance is in great interest. I have great command overwriting due to my five-year experience which incorporates articles, web substances, and web journals. I generally love to play with work, in both my profession and education.  I additionally had teaching experience of 2 years at the eminent college to show business and specialized composition and presently, I am working as an educator and preparing writer and creator. I am unimaginably social, and I love to travel and investigate the world.

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