Korn Ferry Q1 revenue beats estimates on Search and Workforce Solutions growth
Korn Ferry Q1 revenue beats estimates on Search and Workforce Solutions growth
Overview
US consulting firm's fiscal Q1 revenue rose 7%, beating analyst expectations
Adjusted EPS for fiscal Q1 beat analyst expectations
Growth led by double-digit gains in Search and Workforce Solutions
Outlook
Company expects Q2 FY27 fee revenue between $860 mln and $878 mln
Korn Ferry sees Q2 FY27 adjusted EBITDA margin between 16.8% and 17.2%
Company expects Q2 FY27 adjusted diluted EPS between $1.30 and $1.40
Result Drivers
SEARCH AND WORKFORCE SOLUTIONS - Double-digit year-over-year fee revenue growth in Search (10%) and Workforce Solutions (11%) drove results
REGIONAL GROWTH - Fee revenue increased in all regions, with Americas up 9%, EMEA up 4%, and APAC up 1%
HIGHER COSTS - Net income and adjusted EBITDA gains were partially offset by increased compensation, benefits, and administrative expenses
Company press release: ID:nBw2KXyJFa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q1 Revenue | Beat | $764.60 mln | $739.43 mln (5 Analysts) |
Q1 Adjusted EPS | Beat | $1.43 | $1.36 (5 Analysts) |
Q1 EPS |
| $1.32 |
|
Q1 Basic EPS |
| $1.35 |
|
Q1 Fee Revenue |
| $756.50 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the employment services peer group is "buy"
Wall Street's median 12-month price target for Korn Ferry is $84.50, about 3% below its September 8 closing price of $82.04
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 12 three months ago
Reuters Recommended Reads
Sept 8 - Facilities management firm ABM Industries' Q3 adj EPS beats on lower costs
Sept 8 - United Natural Foods Q4 profit beats on cost cuts, productivity gains
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
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