Spotting Winners: Korn Ferry (NYSE:KFY) And Professional Staffing & HR Solutions Stocks In Q1

As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q1. Today, we are looking at professional staffing & hr solutions stocks, starting with Korn Ferry (NYSE:KFY).

The Professional Staffing & HR Solutions subsector within Business Services is set to benefit from evolving workforce trends, including the rise of remote work and the gig economy. With companies casting a wider net to find talent due to remote work, the expertise of staffing and recruiting companies is even more valuable. For those who invest wisely, the use of predictive AI in recruitment and screening as well as automation in HR workflows can enhance efficiency and scalability. On the other hand, digitization means that talent discovery is less of a manual process, opening the door for tech-first platforms. Additionally, regulatory scrutiny around data privacy in HR is evolving and may require companies in this sector to change their go-to-market strategies over time.

The 8 professional staffing & hr solutions stocks we track reported a mixed Q1. As a group, revenues beat analysts’ consensus estimates by 0.8% while next quarter’s revenue guidance was 0.7% below.

While some professional staffing & hr solutions stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.2% since the latest earnings results.

Korn Ferry (NYSE:KFY)

With clients including 97% of the S&P 100 and operations in 103 offices across 51 countries, Korn Ferry (NYSE:KFY) is a global consulting firm that helps organizations design optimal structures, recruit talent, develop leaders, and create effective compensation strategies.

Korn Ferry reported revenues of $719.8 million, up 2.8% year on year. This print exceeded analysts’ expectations by 3%. Despite the top-line beat, it was still a mixed quarter for the company with a decent beat of analysts’ EPS estimates but revenue guidance for next quarter missing analysts’ expectations.

“Even amid the ever-changing global economic and political dynamics, we continue to deliver on our financial and strategic objectives, just as we have over the past several years. Our results reinforce the premise of Korn Ferry’s diversification strategy and our continued momentum,” said Gary D. Burnison, CEO, Korn Ferry.

Korn Ferry scored the biggest analyst estimates beat of the whole group. Unsurprisingly, the stock is up 9.9% since reporting and currently trades at $73.33.

Is now the time to buy Korn Ferry? Access our full analysis of the earnings results here, it’s free.

Best Q1: First Advantage (NASDAQ:FA)

Processing approximately 100 million background checks annually across more than 200 countries and territories, First Advantage (NASDAQ:FA) provides employment background screening, identity verification, and compliance solutions to help companies manage hiring risks.

First Advantage reported revenues of $354.6 million, up 109% year on year, outperforming analysts’ expectations by 2.9%. The business had an exceptional quarter with a solid beat of analysts’ EPS estimates and an impressive beat of analysts’ full-year EPS guidance estimates.

First Advantage scored the fastest revenue growth and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 16.9% since reporting. It currently trades at $17.50.

Is now the time to buy First Advantage? Access our full analysis of the earnings results here, it’s free.

Weakest Q1: Robert Half (NYSE:RHI)

With roots dating back to 1948 as the first specialized recruiting firm for accounting and finance professionals, Robert Half (NYSE:RHI) provides specialized talent solutions and business consulting services, connecting skilled professionals with companies across various fields.

Robert Half reported revenues of $1.35 billion, down 8.4% year on year, falling short of analysts’ expectations by 4.3%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS estimates.

Robert Half delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 10.6% since the results and currently trades at $41.53.

Read our full analysis of Robert Half’s results here.

Kforce (NYSE:KFRC)

With nearly 60 years of matching skilled professionals with the right opportunities, Kforce (NYSE:KFRC) is a professional staffing company that specializes in placing technology and finance experts with businesses on both temporary and permanent bases.

Kforce reported revenues of $330 million, down 6.2% year on year. This number missed analysts’ expectations by 1%. Overall, it was a softer quarter as it also recorded a miss of analysts’ EPS estimates.

The stock is down 3.5% since reporting and currently trades at $41.13.

Read our full, actionable report on Kforce here, it’s free.

Alight (NYSE:ALIT)

Born from a corporate spinoff in 2017 to focus on employee experience technology, Alight (NYSE:ALIT) provides human capital management solutions that help companies administer employee benefits, payroll, and workforce management systems.

Alight reported revenues of $548 million, down 2% year on year. This result topped analysts’ expectations by 1.2%. Overall, it was a strong quarter as it also put up an impressive beat of analysts’ EPS guidance for next quarter estimates and full-year revenue guidance meeting analysts’ expectations.

Alight had the weakest full-year guidance update among its peers. The stock is up 8.3% since reporting and currently trades at $5.67.

Read our full, actionable report on Alight here, it’s free.

Market Update

Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.

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