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View All NewsWorld – Korn Ferry rises on growth in Futurestep, EMEA fee revenue up 3%
Korn Ferry International Inc. (NYSE: KFY) reported total fee revenue rose 1.5%, or 3.2% on a constant currency basis, in its fiscal fourth quarter ended 30 April. The increase was driven by organic growth at its Futurestep division — which includes recruitment process outsourcing, project-based recruitment and other services.
| (USD thousands) | Q4 2017 | Q4 2016 | Change |
| Fee Revenue | 406,065 | 399,960 | 1.5% |
| Net Income | 27,736 | 6,375 | N/A |
“There is notable runway in this market for broader talent offerings,” CEO Gary Burnison said. “We continue to benefit from strong demand for our holistic approach — from our anchor executive search offering to organizational advisory services, leadership development, compensation and rewards and more.”
Korn Ferry also reported that total fee revenue increase was also driven by organic growth in North American executive search.
Fee revenue by segment and geography
| (USD thousands) | Q4 2017 | Q4 2016 | % growth |
| Executive search | |||
| North America | 97,264 | 94,678 | 2.7% |
| Europe, the Middle East, Africa | 37,210 | 36,161 | 2.9% |
| Asia Pacific | 20,061 | 21,199 | -5.4% |
| Latin America | 7,731 | 7,661 | 0.9% |
| Total executive search | 162,266 | 159,699 | 1.6% |
| Hay Group | 185,100 | 187,795 | -1.4% |
| Futurestep | 58,699 | 52,466 | 11.9% |
Full Year Results
| (USD thousands) | FY 2017 | FY 2016 | % growth |
| Fee Revenue | 1,565,521 | 1,292,112 | 21.2% |
| Net Income | 87,238 | 31,433 | 177.5% |
Korn Ferry expects first-quarter fee revenue of between $382 million and $400 million, a year-over-year increase of between 1.7% and 6.5%.
In trading yesterday, Korn Ferry International set a new 52-week high during the trading session when it reached $36.07. Over this period, the share price is up 56.41%. Shares closed at $35.27, up 4.6% on the day. Based on its current share price the company has a market value of $2.02 billion.