Korn/Ferry Shares Popped: What You Need to Know

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Korn/Ferry International (NYSE: KFY  ) surged more than 10% when the staffing agency reported better than expected financial results.

So what: Fiscal fourth-quarter revenue rose 16% to $205.8 million while adjusted earnings more than doubled to $0.39 a share. Analysts had been expecting $191 million and $0.32, respectively.

Now what: The results suggest that while unemployment remains a problem on the whole, cash-rich firms are hiring at the executive level. (Fees from placement services rose 17% for the quarter and 30% for the year.) There's still risk that an uncertain economy could stall Korn/Ferry's growth from here, but at 17 times forward earnings the stock is priced at a modest premium to the long-term profit growth analysts expect. I can't blame Fools for giving this stock four of five stars in Motley Fool CAPS.

Interested in more info on Korn/Ferry International? Add it to your watchlist.

Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team. He didn't own shares in any of the companies mentioned in this article at the time of publication. Check out his portfolio holdings and Foolish writings, or connect with him on Twitter as @milehighfool. You can also get his insights delivered directly to your RSS reader.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool's disclosure policy is at least 10% better than competing disclosure policies.

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Related Tickers

10/28/2016 12:10 PM
KFY $20.20 Up +0.01 +0.05%
Korn/Ferry Interna… CAPS Rating: *****