How did KFY's Q4 2024 EPS performance surprise investors?

Korn Ferry's (KFY) Q4 2024 EPS performance did not meet investor expectations, as evidenced by several key points: 1. **Missed Earnings Expectations**: The reported diluted EPS for Q4 2024 was $1.14, which fell short of the estimated $1.19, missing the mark by approximately 5.79%. This discrepancy led to investor disappointment, as reflected by the company's stock dropping by 6.84% in pre-market trading following the earnings release. 2. **Revenue Challenges**: While KFY's revenue for the quarter was $674 million, marking a 4% decrease year-over-year, the company's performance was not entirely unexpected. The slight miss in revenue was relatively modest compared to the overall market conditions and the company's strategic initiatives. 3. **Strategic Growth Amid Challenges**: Despite the EPS miss, KFY's management highlighted strategic growth efforts, such as investments in productizing intellectual property, enhancements to client offerings, and the launch of new HR integrated software platforms. These actions suggest a forward-looking approach to address current challenges and position the company for future growth. In conclusion, KFY's Q4 2024 EPS performance was underwhelming, primarily due to lower-than-expected earnings per share, which fell by approximately 5.79% below analysts' forecasts. This, coupled with a slight revenue shortfall, contributed to investor disappointment. However, the company's strategic initiatives and improvements in adjusted EBITDA margin indicate a proactive approach to navigating current challenges and positioning KFY for future success.