What Happened?
Shares of organizational consulting firm Korn Ferry (NYSE:KFY) jumped 2.8% in the morning session after the company reported better-than-expected second-quarter 2025 results, beating Wall Street's revenue and earnings estimates.
The global consulting firm posted revenue of $715.5 million, an increase of 4.8% year-over-year, which surpassed the consensus estimate of $698.1 million. Adjusted earnings per share came in at $1.31, which was also ahead of the $1.24 analysts had expected. However, the company provided a mixed outlook for the upcoming third quarter. Its revenue guidance of $700 million fell slightly short of analyst forecasts, though its earnings per share guidance was roughly in line with expectations. Despite the soft revenue forecast, investors appeared to focus on the strong quarterly performance, sending the shares up.
After the initial pop the shares cooled down to $74.86, up 3.2% from previous close.
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What Is The Market Telling Us
Korn Ferry’s shares are not very volatile and have only had 6 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 18 days ago when the stock gained 4.5% on the news that the major indices rebounded, as Fed Chair Jerome Powell delivered dovish remarks at the much-awaited Jackson Hole symposium.
Powell suggested that with inflation risks moderating and unemployment remaining low, the Federal Reserve might consider a shift in its monetary policy stance, including potential interest rate cuts. This outlook eased market concerns about prolonged high interest rates and their impact on economic growth. The prospect of lower borrowing costs bolstered investor confidence, particularly in sectors that have lagged, leading to a broad rally across the market.
Korn Ferry is up 12% since the beginning of the year, and at $74.86 per share, it is trading close to its 52-week high of $79.40 from November 2024. Investors who bought $1,000 worth of Korn Ferry’s shares 5 years ago would now be looking at an investment worth $2,541.
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