Korn/Ferry shares drop on forecast

Executive search firm Korn/Ferry International forecast second-quarter earnings at or below analysts’ estimates. The stock fell to its lowest since August 2006.

Shares of Los Angeles-based Korn/Ferry dropped 79 cents, or 3.9%, to $19.37. The stock has dropped 16% this year.

Earnings are expected to be 30 to 36 cents a share for the quarter ending Oct. 31, the company said. The average estimate of four analysts surveyed by Bloomberg was 36 cents a share. The company, which has offices in 40 countries, said sales would be as much as $185 million, compared with the average estimate of $186 million.

Net income for the quarter ended July 31 rose to $17.1 million, or 36 cents a share, from $14.4 million, or 31 cents, a year earlier. Sales rose 22% to $196 million on higher fees and new customers, the firm said.