Korn Ferry Q3 Earnings: Flat Revenue, EPS Beat, Strong New Business Wins, Dividend Hike And More

Benzinga03-11

Korn Ferry (NYSE:KFY) shares are trading higher after the company reported third-quarter FY25 results.

Revenue remained flat year over year at $676.5 million, beating the consensus of $650.4 million. The fee revenue of the global organizational consulting firm was $668.7 million, flat Y/Y.

RPO fee revenue rose 4% Y/Y, and new business in the quarter stood at $210 million, of which 64% and 36% were from new client wins and renewals/extensions, respectively.

Adjusted EBITDA rose to $114.5 million from $101.7 million, with an adjusted margin of 17.1%, an increase of 190 bps Y/Y in the quarter. Adjusted EPS of $1.19, which beat the consensus of $1.13.

The company’s Board has approved a 30% increase in its quarterly cash dividend to $0.48 per share, payable on April 15 to stockholders of record on March 27, 2025.

During the quarter, the company repurchased 237,000 shares of stock for $17.9 million. The company exited the quarter with cash and equivalents worth $820 million. 

Outlook: Korn Ferry expects fourth-quarter adjusted EPS of $1.22 – $1.30, versus consensus of $1.23 and fee revenue of $680 million – $700 million.

Investors can gain exposure to Korn Ferry via Innovator U.S. Small Cap Managed Floor ETF (NYSE:RFLR) and Tidal Trust III Rockefeller U.S. Small-Mid Cap ETF (NYSE:RSMC).

Price Action: KFY shares are up 2.37% at $64.00 premarket at the last check Tuesday.

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