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Korn/Ferry's profit rises 25%

December 07, 2006|From the Associated Press

Executive search firm Korn/Ferry International on Wednesday posted a 25% increase in fiscal second-quarter profit on higher fee revenue.

The Los Angeles-based company's net income for the quarter that ended Oct. 31 rose to $13.6 million, or 31 cents a share, from $10.9 million, or 25 cents, a year earlier. Analysts polled by Thomson Financial were looking for earnings of 31 cents a share, which includes stock option expenses.

Revenue for the quarter rose 24% to $164.8 million, topping analysts' estimate of $161.2 million. Fee revenue grew 24% to $155.7 million.

"Demand for talent remains strong around the world and we have been pleased with the favorable acceptance by our clients to our nonsearch related offerings," Chairman and Chief Executive Paul C. Reilly said in a statement.

Korn/Ferry expects fiscal third-quarter earnings of 29 cents to 33 cents a share. Fee revenue is expected to be $150 million to $158 million.

Analysts expect third-quarter earnings of 32 cents a share.

Shares of Korn/Ferry fell $1.14 to $22.49 on Wednesday.

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