Korn Ferry (NYSE:KFY) stock fell 1.49% (As on September 6, 12:13:40 AM UTC-4, Source: Google Finance) after the company reported better-than-expected fiscal first quarter results, but provided a mixed outlook for the current quarter. However, fee revenue declined 3% YoY to $674.9 million, or 2% on a constant currency basis. The company attributed this decrease primarily to lower fee revenues in its Professional Search & Interim and RPO segments due to reduced demand in the current economic environment. Executive Search fee revenue grew 2% YoY, while Consulting and Digital segments remained flat YoY but showed positive momentum on a constant currency basis. Operating income was $76.1 million (at an operating margin of 11.3%) in Q1 FY’25, compared to $56.8 million (at an operating margin of 8.1%) in the year-ago quarter, an increase of 320bps. Net income attributable to Korn Ferry was $62.6 million in Q1 FY’25, compared to $46.6 million in Q1 FY’24. Adjusted EBITDA was $111.2 million in Q1 FY’25 compared to $95.7 million in Q1 FY’24. Adjusted EBITDA margin was 16.5% in Q1 FY’25, an increase of 280bps. Operating income, margin, and net income attributable to Korn Ferry increased as a result of strong cost management, coupled with the lower cost of services expense compared to the year-ago quarter. These decreases in expenses were partially offset by the decrease in fee revenue.

KFY in the first quarter of FY 25 has reported the adjusted earnings per share of $1.18, beating the analysts’ estimates for the adjusted earnings per share of $1.12. The company had reported the adjusted revenue growth of 35.9 percent to $682.8 million in the first quarter of FY 25, beating the analysts’ estimates for revenue of $664.4 million.

Additionally, the company repurchased 351,250 shares for $23.5 million during the quarter and declared a quarterly dividend of $0.37 per share, payable on October 15. The company deployed $63M of Cash in FY’25 Q1 Investing $11M in CAPEX, $9M in Debt Service and Returned $43M to Shareholders in Combined Dividends and Share Repurchases.

For the fiscal second quarter, Korn Ferry expects adjusted EPS between $1.14 and $1.26, compared to analysts’ expectations of $1.20. The company projects Q2 revenue in the range of $655 million to $685 million, below the consensus estimate of $687.8 million.