Korn/Ferry International (NYSE:KFY) Shares Gap Up Following Better-Than-Expected Earnings

Key Points

• Korn/Ferry International's stock opened at $76.38 after a strong earnings report, jumping from a previous close of $72.51, and traded at $74.76 with a volume of 150,125 shares.
• The company reported an EPS of $1.31 for the quarter, which exceeded analysts' expectations, showing a 4.8% increase in quarterly revenue compared to the same period last year.
• Korn/Ferry is set to pay a quarterly dividend of $0.48 per share on October 15th, 2023, with an annualized yield of 2.6% and a payout ratio of 41.56%.

Shares of Korn/Ferry International (NYSE:KFY - Get Free Report) gapped up prior to trading on Tuesday following a better than expected earnings announcement. The stock had previously closed at $72.51, but opened at $76.38. Korn/Ferry International shares last traded at $74.76, with a volume of 150,125 shares.

The business services provider reported $1.31 earnings per share for the quarter, topping analysts' consensus estimates of $1.24 by $0.07. The company had revenue of $708.61 million during the quarter, compared to analyst estimates of $688.72 million. Korn/Ferry International had a return on equity of 14.55% and a net margin of 8.95%.Korn/Ferry International's revenue was up 4.8% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.17 earnings per share. Korn/Ferry International has set its Q2 2026 guidance at 1.230-1.33 EPS.

Korn/Ferry International Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, October 15th. Stockholders of record on Friday, September 26th will be given a dividend of $0.48 per share. The ex-dividend date of this dividend is Friday, September 26th. This represents a $1.92 dividend on an annualized basis and a dividend yield of 2.7%. Korn/Ferry International's dividend payout ratio is presently 40.76%.

Analysts Set New Price Targets

A number of brokerages have recently issued reports on KFY. UBS Group reduced their price target on Korn/Ferry International from $75.00 to $74.00 and set a "neutral" rating on the stock in a research report on Tuesday, May 27th. Truist Financial upped their price target on Korn/Ferry International from $80.00 to $88.00 and gave the stock a "buy" rating in a research report on Friday, June 20th. Finally, Wall Street Zen downgraded Korn/Ferry International from a "strong-buy" rating to a "buy" rating in a research report on Wednesday, July 9th. One equities research analyst has rated the stock with a Buy rating and one has given a Hold rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $81.00.

Hedge Funds Weigh In On Korn/Ferry International

Several hedge funds have recently made changes to their positions in KFY. Versant Capital Management Inc increased its position in shares of Korn/Ferry International by 75.9% in the 1st quarter. Versant Capital Management Inc now owns 517 shares of the business services provider's stock valued at $35,000 after acquiring an additional 223 shares during the period. CX Institutional acquired a new position in shares of Korn/Ferry International in the 1st quarter valued at $39,000. Kestra Investment Management LLC increased its position in shares of Korn/Ferry International by 71.8% in the 2nd quarter. Kestra Investment Management LLC now owns 579 shares of the business services provider's stock valued at $42,000 after acquiring an additional 242 shares during the period. Canada Pension Plan Investment Board increased its position in shares of Korn/Ferry International by 200.0% in the 2nd quarter. Canada Pension Plan Investment Board now owns 600 shares of the business services provider's stock valued at $44,000 after acquiring an additional 400 shares during the period. Finally, Caitong International Asset Management Co. Ltd acquired a new position in shares of Korn/Ferry International in the 1st quarter valued at $62,000. 98.82% of the stock is owned by institutional investors and hedge funds.

Korn/Ferry International Stock Performance

The company has a current ratio of 2.21, a quick ratio of 1.83 and a debt-to-equity ratio of 0.21. The stock has a market capitalization of $3.79 billion, a price-to-earnings ratio of 15.36 and a beta of 1.49. The firm has a 50-day moving average of $73.16 and a 200-day moving average of $69.00.

Korn/Ferry International Company Profile

Korn Ferry, together with its subsidiaries, provides organizational consulting services worldwide. It operates through four segments: Consulting, Digital, Executive Search, and Recruitment Process Outsourcing (RPO) & Professional Search. The company provides executive search services to recruit board level, chief executive, other senior executive, and general management talent of organizations.