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What: Shares of executive search firm Korn/Ferry International
So what: Korn/Ferry's second-quarter fee revenues were up 32% compared with last year and were up sequentially as well, gaining 6% compared with its first quarter. This growth in fees was driven by a 28% increase in the volume of executive recruitment engagements as well as a 4% increase in average fee per engagement. Finally, Korn/Ferry's third-quarter earnings guidance exceeded analysts' current estimates.
Now what: Korn/Ferry's CEO reports that clients most dependent on Western economies continued to be cautious about hiring, while more global organizations were recruiting more aggressively. This suggests that recruitment firms can thrive even if U.S. labor markets remain weak.
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Fool contributor April Taylor does not own shares of the companies mentioned. 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 has a disclosure policy.