Korn Ferry Beats Estimates Again But Sequential Top Line Growth Has Stalled
- Korn Ferry reported another strong quarter, beating its sales and EPS estimates.
- However, organic top line growth is clearly slowing down sequentially.
- Future growth will need to rely more on margin expansion, cost restructurings and potential acquisitions.
- Weak August jobs reports from the U.S. and Canada are a concern if the weakness proves to be more than just an outlier.
- Over the next two years, Korn Ferry’s stock has a ~20% upside with a target price of ~$37 per share if the current positive global economic cycle continues.