Friday, November 12, 2021
Kelly Services (KELYA)
Improving Environment but 3Q Operating Results Fall Short
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.
3Q21. Revenue of $1.19 billion was up 15% year-over-year (14.5% in constant currency) but fell short of the consensus $1.25 billion and our $1.275 billion estimate. Kelly reported operating earnings of $9 million, compared to a loss in 3Q20, and up 25.9% on an adjusted basis. GAAP EPS for 3Q21 was $0.87 compared to $0.42 in 3Q20. Adjusted EPS for the third quarter was $0.25 versus $0.29 last year. We had projected adjusted EPS of $0.44.
Demand Continues to Rebound. All five of Kelly’s operating segments delivered organic y-o-y growth. P&I revenues rose 1.4% y-o-y, SET rose 25.5%, Education was up 142.1%, OCG revenues rose 29.1%, and International revenues were up 10.5% y-o-y. The SET, Education, and OCG segments also showed improved operating earnings …
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.
