Guanghui International's performance exceeds expectations but guidance is weak, with the stock price falling nearly 5% before the market open.

Los Angeles - On Monday, Allegis Group (NYSE:KFY) announced third-quarter earnings that exceeded analyst expectations but issued a cautious outlook for the fourth quarter.

Following the earnings release, the company’s stock fell 4.73% in pre-market trading as investors focused on the cautious outlook.

The global consulting firm reported adjusted earnings per share of $1.28 for the third quarter, beating the consensus estimate of $1.23 by $0.05.

Fee income reached $717.4 million, up 7% year-over-year, well above the consensus estimate of $692.44 million. Net profit attributable to Allegis Group increased 12% year-over-year to $65.3 million, while adjusted EBITDA grew 8% to $123.1 million, with a profit margin of 17.2%.

The company provided a fourth-quarter guidance of $1.34 to $1.40 per share, with a median of $1.37, matching analyst expectations. In terms of revenue, Allegis Group expects $730 million to $750 million, with a median of $740 million, slightly above the consensus estimate of $732.7 million.

Allegis Group CEO Gary D. Burnison stated, “Our strong quarterly performance continues to reflect the company’s evolution. The world today is engulfed in unprecedented change—shifts in population, demographics, and technological advancements are converging, significantly impacting how people live, work, and consume.”

Revenue from all solutions increased, led by a 13% rise in executive search, followed by professional search and temporary staffing, each growing 5%.

The company reported that as of the end of the quarter, remaining fees under existing contracts totaled $1.9 billion, up 11% year-over-year.

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