Is KFY's Q1 2025 EPS growth sustainable long-term?

**Korn Ferry's Q1 2025 EPS growth may not be sustainable long-term**. Here's why:

1. **Recent Performance**: Korn Ferry's Q1 2025 EPS growth rate was -2.65%, with a last change of -2.39% and a last price of $60.81. This recent decline suggests that the company may be facing short-term challenges.

|code|Ticker|Name|Date|Net Income YoY|Total Revenue YoY|Diluted EPS YoY|market_code|
|---|---|---|---|---|---|---|---|
|KFY|KFY.N|Korn Ferry|2024 Q2|-99.9410306238692|-3.1631641972002895|-102.89855072463769|169|
|KFY|KFY.N|Korn Ferry|2024 Q3|407.4347863029994|-1.4518559500323946|438.0952380952381|169|
|KFY|KFY.N|Korn Ferry|2024 Q4|36.311131424772505|-5.175417680498128||169|
|KFY|KFY.N|Korn Ferry|2025 Q1|36.17887040373|-3.3275186828683974|31.46067415730336|169|

2. **Revenue Trends**: The company's total revenue grew by -0.05% to $676.54 million, and fee revenue was flat year-over-year at $668.7 million. This lack of significant revenue growth could limit the company's ability to sustain EPS growth in the long term.

|code|Ticker|Name|Date|Total Revenue|Net Income|Diluted EPS|market_code|
|---|---|---|---|---|---|---|---|
|KFY|KFY.N|Korn Ferry|2024 Q2|7.12447E8|44000|-0.04|169|
|KFY|KFY.N|Korn Ferry|2024 Q3|6.76873E8|5.972E7|1.13|169|
|KFY|KFY.N|Korn Ferry|2024 Q4|6.99923E8|6.5612E7||169|
|KFY|KFY.N|Korn Ferry|2025 Q1|6.82761E8|6.4256E7|1.17|169|

3. **Business Segment Performance**: While Executive Search and RPO saw slight growth, Consulting saw a decline. This mixed performance across business segments could make it difficult to achieve consistent EPS growth.
4. **Market Conditions**: The macroeconomic environment for consulting services has been challenging, and Korn Ferry faces potential headwinds from geopolitical and economic uncertainties. These external factors can impact the company's financial performance and EPS growth in the long term.
5. **Strategic Initiatives**: Korn Ferry has been implementing strategic initiatives, such as embracing automation and predictive AI. These initiatives could positively impact the company's long-term growth if successful, but they also carry risks and uncertainties.
6. **Dividend Increase**: The company recently increased its quarterly dividend by 30%, indicating confidence in its financial stability. However, dividend growth alone does not guarantee EPS growth.

In conclusion, while Korn Ferry has taken steps to improve its financial performance, the current EPS growth rate and revenue trends suggest that sustaining long-term EPS growth may be challenging. The company's ability to navigate market challenges, capitalize on strategic initiatives, and maintain consistent revenue growth will be critical factors in determining the sustainability of its EPS growth.