Korn Ferry ( KFY ) shares traded higher on Tuesday after reporting first-quarter adjusted earnings per share of $1.31, beating the analyst consensus estimate of $1.24.

Quarterly sales of $715.543 million (+5% year-over-year at actual, and 4% at constant currency) outpacing the Street view of $689.229 million.

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Net income attributable to Korn Ferry ( KFY ) rose 6% year-over-year to $66.6 million. The company’s margin improved by 10 basis points to 9.4%.

Adjusted EBITDA climbed 8% year-over-year to $120.4 million. The margin expanded by 50 basis points to 17.0%.

Fee revenue rose 1% year over year to $170.0 million in the quarter under review. Growth was driven by higher bill rates, offset by slower backlog use.

“Today we are driving performance with a far more sophisticated, holistic approach that brings together our expertise, robust IP and relevant solutions in every major region of the world to solve our clients’ most pressing challenges,” said Korn Ferry ( KFY ) CEO Gary D. Burnison.

“When one considers our diversification strategy and the demographic shifts alone, the opportunity for Korn Ferry ( KFY ) is immense,” he added.

The company exited the quarter with cash and equivalents worth $684.855 million.

Long-term debt at the end of the quarter was $397.939 million.

Outlook

The company expects second-quarter GAAP EPS of $1.10–$1.16, below the $1.29 analyst estimate.

Korn Ferry ( KFY ), which projects second-quarter adjusted EPS of $1.23–$1.33, compared with the $1.27 analyst estimate, noted that second-quarter fee revenue is expected to be in the range of $690 million and $710 million.

Price Action: KFY shares are trading higher by 2.31% to $74.19 at last check on Tuesday.

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