Korn/Ferry Net Income Surpasses EstimatesThursday, December 6, 2012
Korn/Ferry International on Thursday reported better-than-expected fiscal second quarter profit. It also announced acquisition of a Minnesota staffing firm.
The Los Angeles staffing company reported net income of $1.2 million (3 cents a share) for the period ended Oct. 31, 92 percent (29 cents) lower than in the same period a year earlier, largely due to a restructuring charge. Revenue fell 3 percent to less than $205 million due to weakness in its executive recruitment business.
Net income was 25 cents a share after adjusting for $15.5 million in restructuring charges. Analysts surveyed by FactSet on average had expected adjusted profit of 19 cents a share on revenue of $190 million.
Korn/Ferry also announced that it is buying PDI Ninth House, a Minneapolis staffing firm. It will pay $80 million in cash, with the potential of adding an additional $15 million in cash if certain targets are met. PDI has $90 million to $100 million in annual fee revenue.
In guidance for the third quarter, Korn/Ferry expects adjusted earnings between 26 cents and 34 cents a share. The Wall Street consensus is for 21 cents.
Shares closed down 27 cents, or less than 2 percent, to $14.21 on the New York Stock Exchange.