Kelly Services (KELYA) – Gearing Up For Meaningful Change

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Tuesday, February 15, 2022

Kelly Services (KELYA)
Gearing Up For Meaningful Change

Kelly Services Inc is a provider of workforce solutions and consulting and staffing services. The company’s operations are divided into three business segments namely Americas Staffing, Global Talent Solutions (“GTS”) and International Staffing. It provides staffing solutions through its branch networks in Americas and International operations and also provides a suite of innovative talent fulfilment and outcome-based solutions through GTS segment. Americas Staffing generates maximum revenue from its operations.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

    4Q21. Revenue of $1.25 billion was up 0.7% year-over-year (1.1% in constant currency) but up 6% when adjusting for the additional week in 2021. Consensus was $1.3 billion and we were at $1.31 billion. Kelly reported operating earnings of $15.3 million, compared to $9.5 million in 4Q20, and $19.4 million versus $13.9 million on an adjusted basis. GAAP EPS for 4Q21 was $1.80 compared to $0.59 in 4Q20. Adjusted EPS for the fourth quarter was $0.65 versus $0.41 last year. We had projected adjusted EPS of $0.32.

    Monetization of APAC.  Kelly entered into an agreement to sell nearly all of its PersolKelly JV and its shareholdings in Persol Group. Net cash proceeds are anticipated to be approximately $255 million, or $6.75 per KELYA share. Combined with availability under its credit facilities, Kelly has about $0.5 billion of capital to accelerate its growth in high-margin, high-growth specialties …



This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision. 

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