UPDATE: Korn/Ferry Posts 92% Drop In FQ2 Profit, Plans To Buy PDI Ninth House

Korn/Ferry International

reported a 92% drop in its fiscal second-quarter earnings and also announced its plans to buy PDI Ninth House for $80 million. Korn/Ferry expects current-quarter adjusted earnings of $0.26 to $0.34 per share on fee revenue of $188 million to $201 million. However, analysts were expecting earnings of $0.21 per share. Korn/Ferry's quarterly profit dropped to $1.2 million, or $0.03 per share, from $15.1 million, or $0.32 per share, in the year-ago period. Excluding one-time items, Korn/Ferry earned $0.25 per share. Its revenue fell 2.5% to $204.8 million, while fee revenue dropped 2% to $196.2 million. The company in September expected adjusted earnings of $0.16 to $0.22 per share on fee revenue of $180 million to $195 million. Its operating margin declined to 1.4% from 12.7%. Korn/Ferry shares closed at $14.48 yesterday.