Since my previous Hold rating on Korn Ferry (NYSE: KFY ), the global organizational consulting firm, its stock has gained 17.5%. However, I do consider the majority of these gains to be largely speculative and leadingOliver Rodzianko is an investment analyst specializing in the technology sector, grounded in timeless value principles. His expertise spans AI, semiconductors, software, and renewable energy, with a focus on companies that demonstrate resilient management and lasting competitive advantages. A t ...

Korn Ferry (KFY) FY 2024 Annual General Meeting September 25, 2024 11:00 AM ET Speaker0Good morning, and welcome to the twenty twenty four Annual Meeting of Stockholders. I'm Jerry Lehman, chair of the board of directors. It is 8AM, and I now call a meeting to order. I will act as chair of today's meeting, and Jonathan Quai, our general counsel and corporate secretary, will act as secretary. Also with us are members of our board of directors, our CEO and fellow board member, Gary Burnison Russ Hagee, a nomi ...

Korn/Ferry (KFY) reported $674.95 million in revenue for the quarter ended July 2024, representing a yearover-year decline of 3.5%. EPS of $1.18 for the same period compares to $0.99 a year ago. The reported revenue represents a surprise of +1.69% over the Zacks Consensus Estimate of $663.76 million. With the consensus EPS estimate being $1.12, the EPS surprise was +5.36%. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine t ...

Korn Ferry KFY is set to release earnings results for its first quarter, before the opening bell on Thursday, Sept. 5. Analysts expect the Los Angeles, California-based company to report quarterly earnings at $1.12 per share, up from 99 cents per share in the year-ago period. Korn Ferry projects to report quarterly revenue of $663.94 million for the quarter, according to data from Benzinga Pro. On June 13, Korn Ferry said fourth-quarter revenue fell 5.2% Y/Y to $699.9 million, beating the consensus of $689. ...

Wall Street analysts forecast that Korn/Ferry (KFY) will report quarterly earnings of $1.12 per share in its upcoming release, pointing to a year-over-year increase of 13.1%. It is anticipated that revenues will amount to $663.76 million, exhibiting a decline of 5.1% compared to the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe. Bef ...

All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus. Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that ...

Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases. Taking a l ...

Executive Search and Client Loyalty - Approximately 80% of executive searches in fiscal 2024 were for board level, chief executive, and other senior executive positions, with over 3,700 search engagement clients[66] - More than 85% of assignments in fiscal 2024 were for repeat clients from the previous three fiscal years, indicating strong client loyalty[66] - Over 75% of revenues were generated from clients utilizing multiple lines of the company's business[66] Financial Performance and Revenue - Fee revenue for fiscal 2024 was $2.76 billion, a slight decrease from $2.84 billion in fiscal 2023[72] - Net income attributable to Korn Ferry for fiscal 2024 was $169.2 million, down from $209.5 million in fiscal 2023[72] - Adjusted EBITDA for fiscal 2024 was $408.2 million, with an Adjusted EBITDA margin of 14.8%, excluding $68.6 million in restructuring charges and other costs[72] - Fee revenue decreased by $72.7 million (3%) to $2,762.7 million in fiscal 2024 compared to $2,835.4 million in fiscal 2023, primarily due to decreased demand for permanent placement talent acquisition offerings[74] - Consulting fee revenue increased by $18.0 million (3%) to $695.0 million in fiscal 2024, driven by higher demand for organizational strategy and assessment & succession solutions[74] - Digital fee revenue increased by $12.0 million (3%) to $366.7 million in fiscal 2024, driven by higher demand for organizational strategy, leadership development, and total rewards sales[74] - Executive Search North America fee revenue decreased by $55.2 million (10%) to $506.9 million in fiscal 2024, with an 11% decrease in engagements billed[74] - Executive Search EMEA fee revenue decreased by $2.5 million (1%) to $184.5 million in fiscal 2024, with a 7% decrease in engagements billed[74] - Executive Search Asia Pacific fee revenue decreased by $9.7 million (10%) to $85.9 million in fiscal 2024, with a 15% decrease in engagements billed[74] - Adjusted EBITDA decreased by $49.1 million (11%) to $408.2 million in fiscal 2024 compared to $457.3 million in fiscal 2023, driven by lower fee revenue and higher cost of services, partially offset by reduced compensation and benefits expenses and increased other income from marketable securities[79] - Consulting Adjusted EBITDA increased by $5.8 million (5%) to $114.3 million in fiscal 2024, driven by higher fee revenue, partially offset by increased compensation and benefits expenses and cost of services[79] - Digital Adjusted EBITDA increased by $11.2 million (11%) to $108.7 million in fiscal 2024, driven by higher fee revenue and lower compensation and benefits expenses, partially offset by increased cost of services[79] - The company's fee revenue for 2024 was $2,762,671 thousand, a decrease from $2,835,408 thousand in 2023 and an increase from $2,626,718 thousand in 2022[183] - Total revenue for 2024 was $2,795,505 thousand, compared to $2,863,836 thousand in 2023 and $2,643,455 thousand in 2022[183] - Net income attributable to Korn Ferry for 2024 was $169,154 thousand, down from $209,529 thousand in 2023 and $326,360 thousand in 2022[183] - Earnings per common share (diluted) for 2024 was $3.23, compared to $3.95 in 2023 and $5.98 in 2022[183] - Net income for 2024 decreased to $172.56 million from $213.05 million in 2023 and $330.85 million in 2022[185] - Comprehensive income attributable to Korn Ferry for 2024 was $154.25 million, down from $208.95 million in 2023 and $285.99 million in 2022[185] Workforce and Restructuring - The company initiated a workforce reduction plan affecting approximately 8% of employees, resulting in $68.6 million in restructuring charges for fiscal 2024[68] - The company recorded restructuring charges of $68.6 million in fiscal 2024 to eliminate excess capacity due to macroeconomic challenges[78] Expenses and Cost Management - Compensation and benefits expense decreased by $57.0 million (3%) to $1,844.2 million in fiscal 2024, driven by an 8% decrease in average headcount[75] - General and administrative expenses decreased by $9.5 million (4%) to $259.0 million in fiscal 2024, primarily due to lower impairment and integration costs[76] - Cost of services expense increased by $61.5 million (26%) to $300.0 million in fiscal 2024, driven by higher interim services from acquired companies[77] Income and Taxes - Other income, net increased to $30.7 million in fiscal 2024 from $5.3 million in fiscal 2023, primarily due to greater gains from the increase in the fair value of marketable securities[80] - The provision for income tax decreased to $50.1 million in fiscal 2024 from $82.7 million in fiscal 2023, reflecting a lower effective tax rate of 22.5% compared to 28.0%, partly due to a $9.7 million non-recurring tax benefit[81] - Cash used to pay income taxes decreased to $72.12 million in 2024 from $134.74 million in 2023[188] Cash Flow and Liquidity - Cash and cash equivalents increased to $1,195.4 million as of April 30, 2024, compared to $1,067.9 million in 2023, with $393.8 million held in foreign locations[109] - Marketable securities totaled $254.4 million as of April 30, 2024, including $219.9 million in equity securities, with $202.5 million classified as non-current[109] - Cash provided by operating activities decreased to $284.0 million in fiscal 2024 from $343.9 million in fiscal 2023, primarily due to lower cash inflows[109] - Cash used in investing activities decreased to $53.8 million in fiscal 2024 from $323.5 million in fiscal 2023, mainly due to no acquisitions in 2024 compared to $254.8 million spent in 2023[109] - Net cash provided by operating activities in 2024 was $283.96 million, down from $343.89 million in 2023 and $501.66 million in 2022[188] - Cash and cash equivalents at the end of 2024 increased to $941.01 million from $844.02 million in 2023[188] Debt and Financing - The company completed a private placement of $400.0 million Notes in December 2019, with a $4.5 million discount, maturing December 15, 2027, and used $276.9 million to repay prior revolving credit facility[108] - The company amended its Credit Agreement in June 2022, extending the maturity date to June 24, 2027, and established a $1,150.0 million senior secured credit facility, including a $650.0 million revolving credit facility and a $500.0 million delayed draw term loan facility[108] - No amounts were outstanding under the Credit Facilities as of April 30, 2024[117] - Interest rates for loans under the Amended Credit Agreement fluctuate between Term SOFR plus 1.125% to 2.00% per annum[117] - Quarterly commitment fees on the unused Revolver range from 0.175% to 0.300% per annum based on the consolidated net leverage ratio[117] Shareholder Returns and Stock Repurchases - The company increased its quarterly dividend from $0.10 per share in 2014 to $0.37 per share in June 2024, reflecting a 270% increase over the period[108] - The company repurchased $52.5 million and $93.9 million of its stock during fiscal 2024 and 2023, respectively, with $182.7 million remaining available for repurchases as of April 30, 2024[108][109] - Dividends paid to shareholders in 2024 increased to $54.39 million from $32.97 million in 2023 and $26.79 million in 2022[187] - Repurchases of common stock decreased to $53.16 million in 2024 from $95.46 million in 2023[188] Foreign Currency and Risk Management - Foreign currency losses recorded in fiscal 2024, 2023, and 2022 were $4.5 million, $2.0 million, and $1.2 million, respectively[116] - A 10% fluctuation in foreign exchange rates could result in a foreign exchange gain or loss of $11.9 million based on exposed balances as of April 30, 2024[116] - The company utilizes foreign currency forward contracts to mitigate foreign exchange risks, not for trading or hedging purposes[116] - The company's exposure to foreign currency exchange rates involves 13 major currencies, including the U.S. Dollar, Euro, and Japanese Yen[116] - The company's foreign subsidiaries' operations are measured in local currencies, with assets and liabilities translated into U.S. dollars at reporting period-end rates[116] - The company's foreign currency risk management program primarily focuses on offsetting risks associated with currency exposures[116] - Foreign currency forward contracts are used to offset risks from foreign currency exposures, with fair value changes recorded in the consolidated statements of income[144] Accounting and Financial Controls - The company's disclosure controls and procedures were effective as of April 30, 2024, with no material changes in internal control over financial reporting during the fourth fiscal quarter[93] - The company's internal control over financial reporting was effective as of April 30, 2024, with no material weaknesses identified[137] - The company adopted new accounting standards in fiscal 2023 and 2024, with no material impact on consolidated financial statements[113][114][115] - The company's expected credit loss allowance for accounts receivable is based on historical collection experience, current and future economic conditions, and customer account status[163] - Revenue recognition for consulting services is based on total hours incurred as a percentage of total estimated hours at completion[173] - Digital fee revenue is recognized as services are delivered and the company has a legally enforceable right to payment[173] - Executive and professional search fee revenue is generally one-third of the estimated first-year cash compensation of the placed candidate[173] - RPO fee revenue is recognized over the period that the related recruiting services are performed, with both fixed and variable fees[173] Balance Sheet and Equity - Total stockholders' equity as of April 30, 2024, was $1.74 billion, compared to $1.65 billion in 2023 and $1.55 billion in 2022[187] - Retained earnings as of April 30, 2024, were $1.43 billion, up from $1.31 billion in 2023 and $1.13 billion in 2022[187] - Accumulated other comprehensive loss as of April 30, 2024, was $107.67 million, compared to $92.76 million in 2023 and $92.19 million in 2022[187] - Noncontrolling interest as of April 30, 2024, was $4.27 million, down from $4.93 million in 2023 and $5.24 million in 2022[187] - Total assets grew to $3.68 billion in 2024, up from $3.57 billion in 2023[195] - Total liabilities increased slightly to $1.94 billion in 2024 compared to $1.92 billion in 2023[195] - Stockholders' equity rose to $1.74 billion in 2024 from $1.65 billion in 2023[195] - Retained earnings increased to $1.43 billion in 2024 from $1.31 billion in 2023[195] Marketable Securities and Investments - The company's marketable securities are recorded at fair value and classified as either equity securities or available-for-sale debt securities[165] - No credit loss was recognized for the company's available-for-sale debt securities during fiscal 2024, 2023, and 2022[165] - The company held assets measured at fair value, including cash equivalents, accounts receivable, marketable securities, and foreign currency forward contracts, with fair values based on quoted market prices or third-party valuations[143] - Cash equivalents as of April 30, 2024, included money market funds and commercial paper with initial maturities of less than 90 days[164] COLI Contracts and Death Benefits - Total death benefits payable, net of loans under COLI contracts, were $447.3 million as of April 30, 2024, compared to $444.1 million as of April 30, 2023[86] - The net cash value of COLI policies was $219.0 million as of April 30, 2024, compared to $198.0 million as of April 30, 2023[86] - Total outstanding borrowings against the CSV of COLI contracts were $77.0 million as of April 30, 2024, compared to $77.1 million as of April 30, 2023[86] - Borrowings against the CSV of COLI contracts were $77.0 million and $77.1 million as of April 30, 2024, and 2023, respectively[117] Stock-Based Compensation and Equity Transactions - Stock-based compensation for 2024 was $39.08 million, up from $35.43 million in 2023 and $28.36 million in 2022[187] - Purchase of stock in 2024 amounted to $63.22 million, compared to $116.14 million in 2023 and $117.30 million in 2022[187] - Issuance of stock in 2024 was $9.27 million, slightly higher than $8.45 million in 2023 and $7.69 million in 2022[187] Contractual Obligations - The company has contractual obligations totaling $745.7 million, including $400.0 million in long-term debt and $233.5 million in operating lease commitments[111]

Korn Ferry (NYSE:KFY) is a global organizational consulting firm that serves clients in over 50 countries. The stock has seen substantial growth recently - up by over 35% over the course of the year. The purpose of this article is to determine whether Korn Ferry has the capacity to see further upside from here. | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | |-------------------------------|-------------|----------------|--------|-------|------------------------------|----------------|-- ...

Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments. Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, ...