Friday, August 13, 2021
Kelly Services Inc. (KELYA)
Recovery Continuing; Reinstates Dividend
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.
Refer to the full report for the price target, fundamental analysis, and rating.
2Q21. Revenue of $1.26 billion was up 29% year-over-year (26.2% in constant currency) driven by increased customer demand as the economy recovers and a 310 bp impact from Softworld. Kelly reported operating earnings of $13.7 million, up 24.1% y-o-y, and up 29.3% sequentially. GAAP EPS for 2Q21 was $0.60 compared to $1.04 in 2Q20. Adjusted EPS for the second quarter was $0.49 versus $0.51 last year. We had projected revenue of $1.25 billion and adjusted EPS of $0.32.
Demand Continues to Rebound. Kelly saw strong demand across all of its operating segments in the quarter. P&I revenues rose 14.8% y-o-y, SET rose 20.6%, Education was up 322.1%, OCG revenues rose 28.2%, and International revenues were up 31.6% y-o-y. Operating earnings rose in each segment, with the exception of P&I …
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.
