Korn Ferry stock set to rally after big profit beat, upbeat outlook

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Shares of Korn Ferry KFY, +3.56% were indicated up about 2% in premarket trading Tuesday, after the consulting firm swung to a record fiscal fourth-quarter profit that beat expectations, and provided an upbeat outlook for the current quarter. For the quarter to April 30, net income was $66.2 million, or $1.21 a share, after a loss of about $802,000, or 2 cents a share, in the year-ago period. The FactSet consensus was for earnings per share of 98 cents. Total revenue rose 24% to $557.4 million, well above the FactSet consensus of $488.6 million, as fee revenue jumped 26% to a record $555.2 million. For the fiscal first quarter, the company expects EPS of $1.04 to $1.14 and revenue of $535 million to $555 million, compared with the FactSet consensus for EPS of 63 cents and for revenue of $448 million. The stock has run up 49.7% year to date through Monday, while the S&P 500 SPX, +1.40% has gained 12.5%.

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