The 10-second takeaway
For the quarter ended April 30 (Q4), Korn/Ferry International beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP earnings per share expanded. GAAP earnings per share didn't change.
Gross margins grew, operating margins shrank, net margins dropped.
Korn/Ferry International tallied revenue of $238.6 million. The two analysts polled by S&P Capital IQ wanted to see revenue of $231.3 million on the same basis. GAAP reported sales were 20% higher than the prior-year quarter's $198.1 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 $0.32. The five earnings estimates compiled by S&P Capital IQ averaged $0.31 per share. Non-GAAP EPS of $0.32 for Q4 were 14% higher than the prior-year quarter's $0.28 per share. GAAP EPS of $0.25 were the same as the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 35.3%, 480 basis points better than the prior-year quarter. Operating margin was 7.7%, 100 basis points worse than the prior-year quarter. Net margin was 5.1%, 100 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $222.4 million. On the bottom line, the average EPS estimate is $0.30.
Next year's average estimate for revenue is $932.6 million. The average EPS estimate is $1.30.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 144 members out of 161 rating the stock outperform, and 17 members rating it underperform. Among 54 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 48 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 $21.00.
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