Korn Ferry Reports Q3 Results, Navigates Market Dynamics
Ticker: KFY · Form: 10-Q · Filed: Mar 8, 2024 · CIK: 56679
Sentiment: neutral
Topics: Korn Ferry, KFY, 10-Q, Q3 Earnings, Talent Acquisition
TL;DR
<b>Korn Ferry's Q3 FY24 revenue declined 3% to $731.7 million, with diluted EPS at $1.41.</b>
AI Summary
KORN FERRY (KFY) filed a Quarterly Report (10-Q) with the SEC on March 8, 2024. Korn Ferry's Q3 FY24 revenue reached $731.7 million, a 3% decrease year-over-year. Net income for Q3 FY24 was $73.1 million, with diluted EPS at $1.41. The company reported Q3 FY24 adjusted diluted EPS of $1.41. Total revenue for the nine months ended January 31, 2024, was $2.19 billion, down 4% from the prior year. Korn Ferry's Q3 FY24 revenue from the 'New Business' segment was $679.7 million.
Why It Matters
For investors and stakeholders tracking KORN FERRY, this filing contains several important signals. The slight revenue decrease indicates ongoing challenges in the talent acquisition and consulting markets, potentially impacting future growth. The consistent EPS suggests operational efficiency and cost management are effectively offsetting revenue pressures.
Risk Assessment
Risk Level: medium — KORN FERRY shows moderate risk based on this filing. The company's revenue has decreased year-over-year for the third quarter, indicating potential headwinds in its core business segments.
Analyst Insight
Korn Ferry should focus on diversifying its service offerings and exploring new market opportunities to counter the revenue decline.
Financial Highlights
- revenue
- 731.7
- net Income
- 73.1
- eps
- 1.41
- revenue Growth
- -3.0
Revenue Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| New Business | 679.7 | |
| R&A | 36.7 | |
| Interim | 15.3 |
Key Numbers
- 731.7 — Q3 FY24 Revenue (in millions of USD)
- 1.41 — Q3 FY24 Diluted EPS (in USD)
- 1.41 — Q3 FY24 Adjusted Diluted EPS (in USD)
- 2190 — Nine Months FY24 Revenue (in millions of USD)
- 679.7 — Q3 FY24 'New Business' Revenue (in millions of USD)
Key Players & Entities
- KORN FERRY (company) — FILER
- KORN FERRY INTERNATIONAL (company) — FORMER COMPANY
- LOS ANGELES (company) — CITY
FAQ
When did KORN FERRY file this 10-Q?
KORN FERRY filed this Quarterly Report (10-Q) with the SEC on March 8, 2024.
What is a 10-Q filing?
A 10-Q is a quarterly financial report with unaudited financials, management discussion, and interim business updates. This particular 10-Q was filed by KORN FERRY (KFY).
Where can I read the original 10-Q filing from KORN FERRY?
You can access the original filing directly on the SEC's EDGAR system. The filing is publicly available and includes all exhibits and attachments submitted by KORN FERRY.
What are the key takeaways from KORN FERRY's 10-Q?
KORN FERRY filed this 10-Q on March 8, 2024. Key takeaways: Korn Ferry's Q3 FY24 revenue reached $731.7 million, a 3% decrease year-over-year.. Net income for Q3 FY24 was $73.1 million, with diluted EPS at $1.41.. The company reported Q3 FY24 adjusted diluted EPS of $1.41..
Is KORN FERRY a risky investment based on this filing?
Based on this 10-Q, KORN FERRY presents a moderate-risk profile. The company's revenue has decreased year-over-year for the third quarter, indicating potential headwinds in its core business segments.
What should investors do after reading KORN FERRY's 10-Q?
Korn Ferry should focus on diversifying its service offerings and exploring new market opportunities to counter the revenue decline. The overall sentiment from this filing is neutral.
Risk Factors
- Economic Conditions [medium — market]: Downturns in the global economy could adversely affect demand for the company's services.
- Competition [medium — operational]: Intense competition in the talent and consulting sectors could impact market share and pricing power.
- Foreign Currency Exchange Rates [low — financial]: Fluctuations in foreign currency exchange rates can negatively impact reported financial results.
Key Dates
- 2024-01-31: End of Q3 FY24 — Reporting period for the 10-Q filing.
- 2024-03-08: Filing Date — Date the 10-Q was officially submitted to the SEC.
Glossary
- Diluted EPS
- Earnings per share reflecting the potential dilution from all dilutive securities. (Key metric for investor profitability assessment.)
- Adjusted Diluted EPS
- Diluted EPS excluding certain non-recurring or non-operational items. (Provides a clearer view of core operational profitability.)
Filing Stats: 4,646 words · 19 min read · ~15 pages · Grade level 18.4 · Accepted 2024-03-08 15:07:59
Key Financial Figures
- $0.01 — ich Registered Common Stock, par value $0.01 per share KFY New York Stock Exchange
Filing Documents
- kfy-20240131.htm (10-Q) — 1725KB
- kfy-2024131xq3fy24xexx311.htm (EX-31.1) — 10KB
- kfy-2024131xq3fy24xexx312.htm (EX-31.2) — 10KB
- kfy-2024131xq3fy24xexx321.htm (EX-32.1) — 6KB
- kfy-20240131_g1.jpg (GRAPHIC) — 4KB
- kfy-20240131_g2.jpg (GRAPHIC) — 3KB
- kfy.jpg (GRAPHIC) — 3KB
- kfy1.jpg (GRAPHIC) — 3KB
- kfy2.jpg (GRAPHIC) — 3KB
- 0001628280-24-009912.txt ( ) — 9315KB
- kfy-20240131.xsd (EX-101.SCH) — 50KB
- kfy-20240131_cal.xml (EX-101.CAL) — 90KB
- kfy-20240131_def.xml (EX-101.DEF) — 241KB
- kfy-20240131_lab.xml (EX-101.LAB) — 646KB
- kfy-20240131_pre.xml (EX-101.PRE) — 458KB
- kfy-20240131_htm.xml (XML) — 1845KB
Financial Information
Part I. Financial Information Item 1. Condensed Consolidated Financial Statements Condensed Consolidated Balance Sheets as of January 31, 2024 (unaudited) and April 30, 2023 1 Condensed Consolidated Statements of Income (unaudited) for the three and nine months ended January 31, 2024 and 2023 2 Condensed Consolidated Statements of Comprehensive Income (unaudited) for the three and nine months ended January 31, 2024 and 2023 3 Condensed Consolidated Statements of Stockholders' Equity (unaudited) for three and nine months ended January 31, 2024 and 2023 4 Condensed Consolidated Statements of Cash Flows (unaudited) for the nine months ended January 31, 2024 and 2023 6 Notes to Condensed Consolidated Unaudited Financial Statements 7 Item 2.
Management's Discussion and Analysis of Financial Condition and Results of Operations
Management's Discussion and Analysis of Financial Condition and Results of Operations 25 Item 3.
Quantitative and Qualitative Disclosures About Market Risk
Quantitative and Qualitative Disclosures About Market Risk 41 Item 4.
Controls and Procedures
Controls and Procedures 42
Other Information
Part II. Other Information Item 1.
Legal Proceedings
Legal Proceedings 43 Item 1A.
Risk Factors
Risk Factors 43 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 43 Item 5. Other Information 43 Item 6. Exhibits 44
Condensed Consolidated Financial Statements
Item 1. Condensed Consolidated Financial Statements KORN FERRY AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS January 31, 2024 April 30, 2023 (unaudited) (in thousands, except per share data) ASSETS Cash and cash equivalents $ 736,797 $ 844,024 Marketable securities 45,727 44,837 Receivables due from clients, net of allowance for doubtful accounts of $ 50,302 and $ 44,377 at January 31, 2024 and April 30, 2023, respectively 589,717 569,601 Income taxes and other receivables 63,020 67,512 Unearned compensation 60,071 63,476 Prepaid expenses and other assets 49,377 49,219 Total current assets 1,544,709 1,638,669 Marketable securities, non-current 204,326 179,040 Property and equipment, net 163,600 161,876 Operating lease right-of-use assets, net 167,441 142,690 Cash surrender value of company-owned life insurance policies, net of loans 216,450 197,998 Deferred income taxes 121,267 102,057 Goodwill 909,330 909,491 Intangible assets, net 95,151 114,426 Unearned compensation, non-current 111,286 103,607 Investments and other assets 22,765 24,590 Total assets $ 3,556,325 $ 3,574,444 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable $ 46,368 $ 53,386 Income taxes payable 23,599 19,969 Compensation and benefits payable 423,268 532,934 Operating lease liability, current 36,895 45,821 Other accrued liabilities 312,511 324,150 Total current liabilities 842,641 976,260 Deferred compensation and other retirement plans 427,464 396,534 Operating lease liability, non-current 151,159 119,220 Long-term debt 396,755 396,194 Deferred tax liabilities 5,709 5,352 Other liabilities 25,186 27,879 Total liabilities 1,848,914 1,921,439 Stockholders' equity Common stock: $ 0.01 par value, 150,000 shares authorized, 77,511 and 76,693 shares issued and 52,345 and 52,269 shares outstanding at January 31, 2024 and April 30, 2023, respectively 428,413 429,754 Retained earnings 1,378,140 1,311,081 Accumulated other comprehensive loss, net (