Korn Ferry (KFY) Q3 Earnings: What To Expect

Organizational consulting firm Korn Ferry (NYSE:KFY) will be reporting results this Tuesday before the bell. Here’s what to expect.

Korn Ferry beat analysts’ revenue expectations by 2.5% last quarter, reporting revenues of $715.5 million, up 4.8% year on year. It was a satisfactory quarter for the company, with an impressive beat of analysts’ revenue estimates but revenue guidance for next quarter slightly missing analysts’ expectations.

Is Korn Ferry a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Korn Ferry’s revenue to grow 5.2% year on year to $717.4 million, a reversal from the 4.3% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.31 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Korn Ferry has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.8% on average.

Looking at Korn Ferry’s peers in the professional staffing & hr solutions segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Kforce’s revenues decreased 5.9% year on year, beating analysts’ expectations by 1.5%, and First Advantage reported revenues up 105%, topping estimates by 1.6%. Kforce traded up 28.7% following the results while First Advantage was also up 2.9%.

Read our full analysis of Kforce’s results here and First Advantage’s results here.

Investors in the professional staffing & hr solutions segment have had steady hands going into earnings, with share prices up 1.3% on average over the last month. Korn Ferry is up 2.9% during the same time and is heading into earnings with an average analyst price target of $81 (compared to the current share price of $66.07).

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