The 10-second takeaway
For the quarter ended Oct. 31 (Q2), Korn/Ferry International beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted slightly and GAAP earnings per share dropped significantly.
Gross margins grew, operating margins shrank, net margins dropped.
Korn/Ferry International booked revenue of $204.8 million. The three analysts polled by S&P Capital IQ looked for sales of $195.0 million on the same basis. GAAP reported sales were 2.3% higher than the prior-year quarter's $200.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.25. The six earnings estimates compiled by S&P Capital IQ forecast $0.19 per share. GAAP EPS of $0.03 for Q2 were 91% lower than the prior-year quarter's $0.32 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 100.0%, 6,570 basis points better than the prior-year quarter. Operating margin was 8.9%, 270 basis points worse than the prior-year quarter. Net margin was 0.6%, 700 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $195.2 million. On the bottom line, the average EPS estimate is $0.24.
Next year's average estimate for revenue is $793.6 million. The average EPS estimate is $0.95.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 145 members out of 162 rating the stock outperform, and 17 members rating it underperform. Among 50 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 44 give Korn/Ferry International a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Korn/Ferry International is outperform, with an average price target of $16.10.
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