On March 8, executive recruiter Korn/Ferry (NYSE:KFY) released third-quarter results for the period ended Jan. 31. Here are the quick-and-dirty details for the quarter.

  • Total revenue grew 27%, thanks to strong fee revenue trends.
  • Reported diluted earnings fell 11%. However, when excluding stock-option expenses -- they weren't required as an expense in last year's quarter -- and a gain last year, management reported 26% growth in adjusted earnings.
  • Management continues to repurchase shares, having just announced an additional $50 million buyback.
  • The company projects fourth-quarter fee revenue of $165 million-$175 million, and diluted earnings of $0.33-$0.35 per share.
  • Korn/Ferry carries a five-star rating in the Motley Fool CAPS intelligence database, as does archrival Heidrick & Struggles (NASDAQ:HSII). Online recruiter Monster Worldwide (NASDAQ:MNST) earns two stars, while midlevel placement firm Manpower (NYSE:MAN) has garnered three. Feel free to head to CAPS and tell us what you think about these companies and more.

(Figures in thousands, except per-share data)

Income Statement Highlights

Avg. Est.

Q3 2007

Q3 2006

Change

Sales

$163,330

$173,508

$136,817

26.8%

Net Profit

--

$14,730

$16,613

(11.3%)

EPS

$0.32

$0.31

$0.35

(11.4%)

Diluted Shares

--

47,449

47,484

(0.1%)

*Three months ended January 31, 2007, and 2006. Diluted EPS includes interest expense from convertible securities, net of tax.

Get back to basics with a look at the income statement.

Margin Checkup

Q3 2007

Q3 2006

Change*

Operating Margin

12.34%

13.68%

(1.34)

Net Margin

8.94%

12.72%

(3.78)

*Expressed in percentage points.

Margins are the earnings engine.

Balance Sheet Highlights

Assets

Q3 2007

Q3 2006

Change

Cash + ST Invest.

$282,621

$232,128

21.8%

Accounts Rec.

$121,374

$89,809

35.1%



Liabilities

Q3 2007

Q3 2006

Change

Accounts Payable

$9,796

$8,473

15.6%

Long-Term Debt

$47,325

$45,099

4.9%



Learn the ways of the balance sheet.

Cash Flow Highlights

Fools will have to wait until Korn/Ferry files its quarterly 10-Q with the Securities and Exchange Commission for juicy cash flow details. Find out why Fools always follow the money.

Related Foolishness:

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean.

Fool contributor Ryan Fuhrmann has no financial interest in any company mentioned. Feel free to email him with feedback or to discuss any companies mentioned further. The Fool has an ironclad disclosure policy.