Korn Ferry (NYSE:KFY) reported in-line earnings for its fourth quarter, while sales exceeded views. The company issued weak Q1 sales guidance.
The Los Angeles-based KFY, a global organizational consulting firm, today announced fourth quarter and annual fee revenue of $490.8 million and $1,926.0 million, respectively. In addition, fourth quarter diluted earnings per share was $0.89 and Adjusted diluted earnings per share was $0.88.
Said CEO Gary Burnison, "I am pleased to report fee revenue of $491 million and strong profitability, with diluted earnings per share and Adjusted diluted earnings per share of $0.89 and $0.88 during our recently completed fourth quarter. Net income attributable to Korn Ferry was $50.3 million and operating margin was 12.7%.
"Adjusted EBITDA was $82.2 million and EBITDA margin was 16.7% -- both all-time highs. We achieved the highest fiscal year fee revenue in our firm's history – up 9% on a US GAAP basis year-over-year and 12% at constant currency,"
Operating income was $42.0 million in Q4 FY'19 compared to $47.0 million in Q4 FY'18. Operating margin was 22.0% in Q4 FY'19 compared to 24.6% in the year-ago quarter.
The decrease in operating income was due to an increase in compensation and benefits expense primarily from amounts owed under certain deferred compensation and retirement plans driven by increases in the fair value of participants' accounts in Q4 FY'9 compared to decreases in the year-ago quarter, partially offset by a decline in performance related bonus expense.
Shares plummeted $9.72, or 20%, to $38.80
