Mixed Fortunes for Korn Ferry: What's Behind Their Soaring Dividend Despite Falling Income?
Portfolio Pulse from Anusuya Lahiri
Korn Ferry (NYSE:KFY) reported a slight decline in Q2 FY24 total revenue but beat consensus estimates. Despite a significant drop in operating income and margin, the company increased its quarterly dividend by 83%. KFY expects higher adjusted EPS for Q3 than consensus and shares are up 6.33% in premarket trading.
December 06, 2023 | 1:28 pm
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Korn Ferry reported better-than-expected Q2 FY24 revenue and increased its dividend significantly, indicating confidence in its financial position. The company also provided a strong Q3 adjusted EPS outlook.
The increase in dividend despite a fall in operating income suggests management's confidence in the company's cash flow and future prospects. The positive Q3 outlook and premarket stock price rise reflect investor optimism, likely leading to a short-term positive impact on the stock.
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IMPORTANCE 90
RELEVANCE 100