Shares of Korn Ferry shot up 4.0% in premarket trading Wednesday, after the staffing services company reported fiscal fourth-quarter record profit and revenue that rose above expectations, and provided an upbeat outlook, with shortages of skilled labor expected to persist for “years to come.” Net income for the quarter to April 30 increased to $91.7 million, or $1.70 a share, from $66.2 million, or $1.21 a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share rose to $1.75 from $1.21, beating the FactSet consensus of $1.55. Revenue grew 30.4% to $727.0 million, above the FactSet consensus of $680.0 million, as selected executive search data revenue rose 22.1% to $245.7 million and recruitment process outsourcing (RPO) and professional search data revenue growing 77.9% to $216.1 million. Operating margin improved to 19.2% from 15.5%. For the first quarter, the company expects adjusted EPS of $1.42 to $1.58, above the FactSet consensus of $1.39. “We are also in a cycle in which, regardless of economic activity, shortages of skilled labor are projected to persist for years to come,” said Chief Executive Gary Burnison. The stock has dropped 28.9% year to date through Tuesday while the S&P 500 has shed 21.0%.
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