Monday, August 14, 2023
Kelly (Nasdaq: KELYA, KELYB) connects talented people to companies in need of their skills in areas including Science, Engineering, Education, Office, Contact Center, Light Industrial, and more. We’re always thinking about what’s next in the evolving world of work, and we help people ditch the script on old ways of thinking and embrace the value of all workstyles in the workplace. We directly employ nearly 350,000 people around the world and connect thousands more with work through our global network of talent suppliers and partners in our outsourcing and consulting practice. Revenue in 2021 was $4.9 billion. Visit kellyservices.com and let us help with what’s next for you.
Joe Gomes, Managing Director, Equity Research Analyst, Generalist , 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.
2Q Results. Kelly reported revenues of $1.22 billion, a 3.9% decrease, or down 4.5% in constant currency, from the prior year. Organic revenue was down 2.2% in constant currency. We estimated revenue at $1.24 billion. GP rate was down 90 basis points to 19.8% primarily due to lower permanent placements fees. Net income was $7.5 million, or EPS of $0.20, compared to $2.2 million, or EPS of $0.06 last year. Adjusted EPS was $0.36 versus $0.45. We were at $0.44.
Transformation Plan. Kelly is moving quickly, already seeing benefits from its cost optimization and efficiencies programs. Next up will be a focus on growth, both organic, especially capturing a higher wallet share from existing clients, as well as a renewed inorganic focus.
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