Friday, May 10, 2024
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.
1Q24. There are a lot of moving parts, with the sale of the European staffing business and some one-time expenses. On an organic basis, revenue declined 2.6% y-o-y to $945.6 million due to ongoing soft demand, although the Education segment grew 16.2% y-o-y. Adjusted EBITDA margin was up 110bp to 3.2% driven by the sale of the European business and ongoing expenses reduction initiatives. Adjusted net earnings rose to $20.3 million, or $0.56/sh, from $15.9 million, or $0.42/sh in 1Q23.
GAAP Results. Revenue of $1.05 billion declined 17.6% (17.7% decline on constant currency basis) from last year. Gross profit rate was down 30bp to 19.7% y-o-y with mix and lower permanent placement fees offsetting the benefit from the sale of the European staffing business. Operating earnings of $26.8 million rose 150.2%. Net income was $25.8 million, or $0.70/sh, versus $10.9 million, or $0.29/sh in the prior year.
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