LOS ANGELES - Korn Ferry (NYSE: NYSE:KFY), a global organizational consulting firm, announced the election of Russ Hagey to its board of directors. Hagey, with over 40 years at Bain & Company, brings a wealth of experience in talent management and consulting to the firm's leadership.
Previously holding positions as Senior Partner and Chief Leadership Officer, as well as Worldwide Chief Talent Officer at Bain, Hagey has a history of consulting for a variety of clients across multiple industries. His expertise spans corporate strategy, growth, new product development, and sales operations.
Gary D. Burnison, CEO of Korn Ferry, expressed enthusiasm for Hagey's board membership, citing his deep understanding of organizational issues facing global companies as a significant asset. Jerry Leamon, Non-Executive Chair of Korn Ferry's Board of Directors, also welcomed Hagey, noting his broad consulting experience and industry-spanning career as valuable to the board's capabilities.
Hagey's background includes serving as Chair of the Elizabeth Glaser Pediatric AIDS Foundation and on the board of LA's BEST (NYSE:BEST) after-school program. He holds an MBA from Stanford Graduate School of Business and a BA in Economics from UCLA.
Korn Ferry assists clients with organizational structure design, hiring, employee motivation, and professional development. The company's forward-looking statements in the press release, which discuss expectations for the board and future plans, are subject to risks and uncertainties that could cause actual results to differ. These statements reflect Korn Ferry's current expectations and are not guarantees of future performance.
The addition of Hagey is anticipated to contribute to the board's strategy and oversight as Korn Ferry continues to navigate the consulting industry's evolving landscape. This news is based on a press release statement from Korn Ferry.
In other recent news, Korn Ferry has reported strong results for Q1 FY2025, with fee revenue and profitability meeting or exceeding company expectations. The company highlighted an expanded adjusted EBITDA margin and a 36% increase in employee productivity from pre-pandemic levels. Korn Ferry's capital allocation strategy included significant returns to shareholders, new hires, digital upgrades, and technology investments. The company anticipates Q2 fee revenue to be between $655 million and $685 million, with an adjusted EBITDA margin of 6.3% to 16.7% and GAAP diluted earnings per share of $1.11 to $1.23. Despite a decline in Professional Search and interim fee revenues, the company sees signs of stabilization and expects growth in its net consultants across various business segments in the coming year. Korn Ferry is also focusing on a go-to-market strategy, innovation and IP, brand enhancement, mergers and acquisitions, and talent development. However, the decline in flights to China has negatively impacted the business, leading to decreased revenue. Nevertheless, the company remains confident in capturing future growth opportunities with its improved investable cash position of $553 million.
InvestingPro Insights
In light of Russ Hagey's appointment to the board of directors at Korn Ferry, investors and stakeholders may find the following InvestingPro data and tips particularly illuminating when considering the company's financial health and future prospects:
InvestingPro data shows that Korn Ferry holds a market capitalization of approximately $3.77 billion, indicative of its substantial presence in the industry. The company's Price to Earnings (P/E) ratio stands at 20.59, with an adjusted P/E ratio over the last twelve months as of Q1 2023 at 18.03. This valuation metric suggests that while the company is trading at a price reflective of investors' expectations for future earnings, it's also important to consider the high P/E ratio in relation to near-term earnings growth as pointed out by one of the InvestingPro Tips.
Furthermore, Korn Ferry's dividend yield as of late 2024 was 2.01%, with a remarkable dividend growth of 105.56% over the last twelve months. This data, coupled with the InvestingPro Tip that Korn Ferry has raised its dividend for 4 consecutive years, may appeal to income-focused investors looking for a track record of consistent dividend growth.
Additionally, the firm's stock price performance has been noteworthy, with a 1 year price total return of 59.59%, reflecting a strong return over the last year. This aligns with the InvestingPro Tip highlighting the company's strong return over the last five years, which might interest long-term investors.
For those seeking more detailed analysis and additional insights, there are more InvestingPro Tips available at https://www.investing.com/pro/KFY. These tips include the company's ability to cover interest payments with cash flows and the fact that its liquid assets exceed short-term obligations, both of which are crucial considerations for assessing a company's financial stability and operational efficiency.
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