Korn Ferry Q4 Results Beat Street Expectations; Hikes Dividend By 25%

Korn Ferry KFY reported fourth-quarter FY22 total revenue growth of 30.4% year-over-year to $727 million, beating the consensus of $680.71 million.
The fee revenue increased 30% Y/Y to $721.1 million, up 33% on a constant currency basis, reflecting an increase in demand for core and integrated service offerings and the acquisitions of Lucas Group and Patina in the RPO and Professional Search segment.
Adjusted EPS improved to $1.75 from $1.21 in 4Q21, beating the consensus of $1.55.
Operating income improved to $138.75 million versus $86.25 million in 4Q21, and the margin expanded by 351 bps to 19.1%.
Adjusted EBITDA increased 28% Y/Y to $144.4 million, and the margin declined 30 bps to 20%.
Dividend: The company increased its regular quarterly cash dividend by 25% to $0.15 per share, starting 1Q23.
Korn Ferry repurchased ~1.04 million shares of stock during the quarter for $67.2 million. Further, the Board authorized an incremental $300 million for future share repurchases.
1Q23 Outlook: Korn Ferry expects fee revenue of $680 million - $710 million and EPS of $1.35 - $1.51.
KFY expects adjusted EPS of $1.42 - $1.58, above the consensus of $1.39.
Price Action: KFY shares traded higher by 3.30% at $55.62 on the last check Wednesday.

Earnings Calendar