- Korn Ferry (NYSE:KFY) reported fourth-quarter FY22 total revenue growth of 30.4% year-over-year to $727 million, beating the consensus of $680.71 million.
- The fee revenue increased 30% Y/Y to $721.1 million, up 33% on a constant currency basis, reflecting an increase in demand for core and integrated service offerings and the acquisitions of Lucas Group and Patina in the RPO and Professional Search segment.
- Adjusted EPS improved to $1.75 from $1.21 in 4Q21, beating the consensus of $1.55.
- Operating income improved to $138.75 million versus $86.25 million in 4Q21, and the margin expanded by 351 bps to 19.1%.
- Adjusted EBITDA increased 28% Y/Y to $144.4 million, and the margin declined 30 bps to 20%.
- Dividend: The company increased its regular quarterly cash dividend by 25% to $0.15 per share, starting 1Q23.
- Korn Ferry repurchased ~1.04 million shares of stock during the quarter for $67.2 million. Further, the Board authorized an incremental $300 million for future share repurchases.
- 1Q23 Outlook: Korn Ferry expects fee revenue of $680 million - $710 million and EPS of $1.35 - $1.51.
- KFY expects adjusted EPS of $1.42 - $1.58, above the consensus of $1.39.
- Price Action: KFY shares traded higher by 3.30% at $55.62 on the last check Wednesday.
