Korn Ferry Consulting Firm Announces Dividend, Forecasts Higher Earnings in Q4 Amid Revenue Dip

Korn Ferry KFY reported a third-quarter fiscal 2024 total revenue decline of 1.5% year-over-year to $676.87 million, beating the consensus of $657.96 million. 

Fee revenue of the global organizational consulting firm was $668.68 million, a decrease of 2.0% Y/Y. Adjusted EPS of $1.07 beats the estimate of $0.99.

Operating income climbed 299% Y/Y to $49.9 million, with an operating margin of 7.5%, up by 570 bps Y/Y. Adjusted EBITDA was $101.7 million, with an adjusted EBITDA margin of 15.2%, up by 110 bps Y/Y.

The company exited the quarter with cash and equivalents worth $782.5 million. 

Dividend: The company declared a quarterly dividend of $0.33 per share on March 5, 2024, payable on April 15, 2024, to stockholders of record on March 27, 2024.

Q4 Outlook: Korn Ferry expects adjusted EPS of $1.09 – $1.17, versus consensus of $1.07 and fee revenue of $675 million – $695 million.

Investors can gain exposure to Korn Ferry via Elevation Series Trust Sovereign’s Capital Flourish Fund SOVF and Invesco S&P SmallCap Industrials ETF PSCI.

Price Action: KFY shares closed lower by 3.14% to $64.06 on Tuesday.