Group 1 - The article emphasizes the importance of making contrarian bets based on macro views and stock-specific turnaround stories to achieve outsized returns with a favorable risk/reward profile [1] - The author has over fifteen years of experience in the investment field, focusing on identifying potential investment opportunities [1] Group 2 - There is a disclosure stating that the author does not hold any stock, option, or similar derivative positions in the companies mentioned and has no plans to initiate any such positions within the next 72 hours [2] - The article expresses the author's personal opinions and is not influenced by any compensation from companies mentioned [2]

Group 1 - Korn/Ferry reported revenue of $712.05 million for the quarter ended April 2025, a year-over-year increase of 3.1% [1] - The EPS for the same period was $1.32, compared to $1.26 a year ago, representing a surprise of +4.76% over the consensus estimate [1] - The reported revenue exceeded the Zacks Consensus Estimate of $688.94 million by +3.35% [1] Group 2 - Total Executive Search fee revenue was $227 million, surpassing the estimated $206.26 million, reflecting a year-over-year increase of +14.2% [4] - Overall fee revenue was $712.05 million, compared to the average estimate of $688.94 million, indicating a +3.1% change year over year [4] - Digital fee revenue was $91.63 million, slightly below the average estimate of $91.65 million, with a year-over-year change of +0.4% [4] - Consulting fee revenue was $169.36 million, exceeding the estimated $167.62 million, but showing a year-over-year decline of -7% [4] Group 3 - Korn/Ferry's shares have returned -3.3% over the past month, while the Zacks S&P 500 composite increased by +0.6% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Group 1: Earnings Performance - Korn/Ferry reported quarterly earnings of $1.32 per share, exceeding the Zacks Consensus Estimate of $1.26 per share, and showing an increase from $1.26 per share a year ago, representing an earnings surprise of 4.76% [1] - The company posted revenues of $712.05 million for the quarter ended April 2025, surpassing the Zacks Consensus Estimate by 3.35%, compared to year-ago revenues of $690.8 million [2] - Over the last four quarters, Korn/Ferry has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] Group 2: Stock Performance and Outlook - Korn/Ferry shares have declined about 1% since the beginning of the year, while the S&P 500 has gained 1.7% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the coming quarter is $1.18 on revenues of $671.85 million, and for the current fiscal year, it is $4.65 on revenues of $2.71 billion [7] Group 3: Industry Context - The Staffing Firms industry, to which Korn/Ferry belongs, is currently ranked in the bottom 15% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - Resources Connection, another company in the same industry, is expected to report a significant decline in earnings, with a projected EPS of $0.03, reflecting a year-over-year change of -89.3% [9]

FY'25 Q4 Earnings Call Presentation JUNE 18, 2025 | © 2025 Korn Ferry Korn Ferry – A Global Organizational Consulting Firm The leading brand in Talent and Organizational Consulting ~ 9,200 colleagues strategically positioned in more than 50 countries Balanced capital allocation and excellent M&A track record Proven management team Proprietary and scaled IP and data: • Driving an expanding suite of digitized products • Enabling the delivery of scaled, integrated talent and organization solutions • "Brand Per ...

Financial Performance - Korn Ferry reported Q4 FY'25 fee revenue of $712.0 million, a 3% increase year-over-year, and full year fee revenue of $2,730.1 million, a 1% decrease compared to FY'24[3]. - Net income attributable to Korn Ferry for Q4 FY'25 was $64.2 million with a margin of 9.0%, while full year net income was $246.1 million, reflecting a margin increase of 290bps from FY'24[10]. - Adjusted EBITDA for Q4 FY'25 was $121.1 million, with a margin of 17.0%, up 70bps year-over-year; full year adjusted EBITDA was $463.9 million, also with a margin of 17.0%, an increase of 220bps[11]. - Total revenue for the year ended April 30, 2025, was $2.761086 billion, a decrease of 1.2% from $2.795505 billion in 2024[49]. - Consolidated net income for the three months ended April 30, 2025, was $64,244 million, representing a margin of 9.0%, compared to $65,189 million and a margin of 9.4% for the same period in 2024[61]. - For the year ended April 30, 2025, consolidated net income was $246,062 million, with a margin of 9.0%, compared to $169,154 million and 6.1% in 2024[61]. Segment Performance - Executive Search segment achieved Q4 FY'25 fee revenue of $227.0 million, a 14% increase year-over-year[3]. - Consulting fee revenue decreased to $169.4 million in Q4 FY'25, down 7% year-over-year, primarily due to a shift towards larger engagements[16]. - Digital segment fee revenue was $91.6 million in Q4 FY'25, essentially flat year-over-year, with an adjusted EBITDA margin increase to 31.1%[21]. - Fee revenue in the Professional Search & Interim segment for Q4 FY'25 was $130.7 million, a slight increase of 1% from $129.2 million in Q4 FY'24[27]. - RPO fee revenue for Q4 FY'25 was $93.3 million, representing a 4% increase from $89.5 million in Q4 FY'24[31]. - North America executive search revenue for the three months ended April 30, 2025, was $143,014 million, with a margin of 27.3%, compared to $125,468 million and 26.4% in 2024[61]. Capital Allocation and Investments - The company repurchased 232,000 shares for $15.0 million and paid dividends totaling $25 million during the quarter[3]. - Korn Ferry invested $44 million in an acquisition and $62 million in technology platforms and product enhancements during FY'25[3]. - The company maintained a balanced capital allocation approach, returning $89 million through share repurchases and $84 million through dividends in FY'25[3]. Future Outlook - The company expects Q1 FY'26 fee revenue to be in the range of $675 million to $695 million[38]. - Q1 FY'26 adjusted diluted earnings per share is projected to be between $1.18 and $1.26[35]. Consultant Metrics - The company reported a total of 560 consultants at the end of FY'25, an increase from 542 in FY'24[24]. - New engagements in the Executive Search segment totaled 1,738 in Q4 FY'25, compared to 1,586 in Q4 FY'24[24]. Adjusted Metrics - Adjusted net income attributable to Korn Ferry for the three months ended April 30, 2025, was $64.244 million, slightly down from $65.189 million in the same period last year[47]. - Adjusted EBITDA for the year ended April 30, 2025, increased to $463.866 million, compared to $408.204 million in 2024, reflecting a growth of 13.6%[53]. - The adjusted net income attributable to Korn Ferry for the three months ended April 30, 2025, was $70.109 million, up from $65.731 million in the same period of 2024, representing a 6.4% increase[56]. - Total adjusted EBITDA for the three months ended April 30, 2025, was $121,141 million, with a margin of 17.0%, up from $112,300 million and a margin of 16.3% in 2024[61].

Group 1 - Korn Ferry is set to release its fourth-quarter earnings results on June 18, with expected earnings of $1.26 per share, unchanged from the previous year [1] - The projected quarterly revenue for Korn Ferry is $689.89 million, slightly down from $690.80 million a year earlier [1] - In the third quarter, Korn Ferry reported flat revenue year over year at $676.5 million, exceeding the consensus estimate of $650.4 million [2] Group 2 - Korn Ferry's fee revenue for the third quarter was $668.7 million, also flat year over year [2] - The company's shares fell by 3.2%, closing at $66.59 [2] - Recent analyst ratings include a Neutral rating from UBS with a price target cut from $75 to $74, a Buy rating from Truist Securities with a price target cut from $84 to $80, and an Outperform rating from Baird with a price target increase from $72 to $79 [6]

Core Insights - Korn/Ferry (KFY) is expected to report quarterly earnings of $1.26 per share, indicating no change from the previous year [1] - Analysts forecast revenues of $688.94 million, representing a decrease of 0.3% year over year [1] - The consensus EPS estimate has remained unchanged over the past 30 days, reflecting analysts' reassessment of projections [1] Revenue Projections - Analysts estimate 'Fee Revenue - Total Executive Search' at $206.26 million, indicating a year-over-year increase of 3.8% [4] - The combined estimate for 'Fee Revenue' is projected to be $688.94 million, suggesting a decrease of 0.3% year over year [4] - 'Fee Revenue - Digital' is expected to reach $91.65 million, reflecting a change of 0.4% from the prior-year quarter [4] - 'Fee Revenue - Consulting' is anticipated to be $167.62 million, indicating a year-over-year decline of 8% [5] Market Performance - Over the past month, Korn/Ferry shares have recorded a return of 0.8%, compared to the Zacks S&P 500 composite's return of 3.6% [5] - Korn/Ferry holds a Zacks Rank 5 (Strong Sell), suggesting it may underperform the overall market in the upcoming period [5]

Korn Ferry (KFY) FY Conference Summary Company Overview - **Company**: Korn Ferry - **Industry**: Staffing and Human Capital Services - **Event Date**: June 04, 2025 - **Key Speakers**: Bob Rozek (CFO), Tiffany Louders (VP of Investor Relations) Core Points and Arguments Business Transformation - Korn Ferry has evolved from primarily an executive search firm (80-85% of revenue) to a diversified organizational consulting firm, with executive search now representing only 29% of the business [5][8] - The company has developed capabilities in organizational strategy, talent acquisition, leadership development, and total rewards [7][8] Financial Performance - FY 2024 fee revenue was $2.76 billion, with a trailing 12-month revenue of $2.71 billion, reflecting a slight decline of 1% year-over-year [11] - Adjusted EBITDA increased by nearly $50 million, with a margin improvement of 200 basis points [11] - Digital business revenue, including subscriptions and licenses, grew by 200 basis points [11] Client Base and Market Position - Korn Ferry works with 97% of the S&P 500 and 75% of the best companies identified by Fortune magazine [12] - The addressable market for Korn Ferry's services is estimated at $450 billion, driven by demographic changes [17] Strategic Focus - The company emphasizes integrated client engagements, aiming to present itself as a unified entity rather than a collection of services [25][46] - Korn Ferry's growth strategy includes a balanced approach to capital allocation, focusing on reinvestment in the business, M&A, dividends, and share buybacks [36][39] M&A and Growth Strategy - M&A has contributed approximately 40% of Korn Ferry's growth, with significant acquisitions like PDI and Hay Group enhancing its capabilities [27] - The company aims to pursue transformational opportunities at the intersection of talent and strategy [27] Talent and Retention - Korn Ferry has a strong retention rate of over 99% for senior client personnel, highlighting its focus on talent management [29] - The company is developing a "talent suite" to integrate various solutions and improve client engagement [30] Margin Improvement - Korn Ferry has seen margin increases despite challenging market conditions, with a current margin of 17% and a target range of 16-18% [54][58] - Cost management strategies include reducing real estate expenses and proactively managing underperforming staff [56][58] Additional Important Insights - The executive search business has shown positive growth due to factors like workforce turnover and changing work preferences [50][53] - Korn Ferry's integrated approach aims to eliminate silos within the organization, enhancing collaboration and client service [46][48] - The company has a disciplined approach to M&A, focusing on strategic alignment, financial viability, and cultural fit [39][40] This summary encapsulates the key points discussed during the Korn Ferry FY Conference, highlighting the company's strategic direction, financial performance, and market positioning.

Korn Ferry (KFY) Conference Summary Company Overview - Korn Ferry is recognized as the largest executive search firm globally, evolving into a talent consulting organization [1] Key Insights Business Strategy - The company aims to break down silos between different business lines (executive search, consulting, digital) to present a unified Korn Ferry brand to clients [8][9] - The focus is on becoming a comprehensive talent partner for clients, addressing all aspects of their talent and business issues [9] Revenue and Client Management - The Marquee and Diamond program includes 350 top clients, contributing approximately 40% of consolidated revenue, up from 30% six years ago [10][11] - The program generates over $1 billion in fees from a total of $2.7 billion to $2.8 billion in fee revenue [11] - Leadership is taking personal responsibility for key accounts to enhance client relationships and drive growth [12][13] Financial Performance - Korn Ferry maintains an EBITDA margin range of 16% to 18%, currently at 17% [21] - In a mild recession, margins may drop to low double digits; in a severe recession, they could fall to mid-single digits but are expected to recover [21][60] Cost Management - The company has reduced real estate costs by 35% and moderated spending on business development [23] - Korn Ferry is actively weeding out low performers to optimize workforce efficiency [25] Capital Allocation - The company prioritizes reinvesting in the business, including hiring and technology investments, while also returning cash to shareholders through dividends and buybacks [28][29] - Current dividends are approximately $1.92 per share, yielding about 2.5% [30] M&A Strategy - Korn Ferry has focused on acquiring companies that align with its core competencies, particularly in finance, accounting, and IT [32][33] - The interim business is positioned to leverage executive search capabilities for cross-selling opportunities [37] Digital and AI Initiatives - The company is developing a single sign-on repository to streamline client access to various services and data [40][56] - AI initiatives are aimed at improving efficiency in consulting services and back-office operations [63][64] Market Outlook - The retirement of baby boomers is expected to create a slight uptick in executive search demand over the next three to five years [41] - The company anticipates a gradual recovery in the market as clients adapt to current economic conditions [74] Long-term Aspirations - Korn Ferry aims to be the leading name in human capital and talent strategy, akin to how McKinsey and BCG are viewed in business strategy [76] Additional Important Points - The company is focused on enhancing its digital capabilities and leveraging its intellectual property for consulting engagements [46][54] - Korn Ferry is committed to maintaining a strong balance sheet and generating free cash flow [28]

Core Insights - The article emphasizes the importance of the Zacks Rank in identifying strong stocks through earnings estimates and revisions, while also acknowledging the diverse strategies investors may adopt [1] - Value investing is highlighted as a favored strategy that seeks to identify undervalued companies based on traditional valuation metrics [2] - The Style Scores system is introduced, particularly the "Value" category, which helps investors find stocks with high value grades and strong Zacks Ranks [3] Company Analysis: KornFerry International (KFY) - KornFerry International currently holds a Zacks Rank of 2 (Buy) and an A for Value, indicating strong investment potential [4] - The stock is trading at a P/E ratio of 12.74, significantly lower than the industry average P/E of 15.62, suggesting it may be undervalued [4] - Over the past 12 months, KFY's Forward P/E has fluctuated between 11.84 and 15.53, with a median of 13.73, further supporting its valuation appeal [4] - KFY has a P/CF ratio of 10.96, which is favorable compared to the industry's average P/CF of 12.26, indicating strong operating cash flow [5] - The P/CF for KFY has ranged from 10.19 to 15.39 over the last year, with a median of 13.77, reinforcing its undervaluation status [5] - Overall, KFY's strong value metrics and positive earnings outlook position it as an attractive value stock at this time [6]