Kelly Services Earnings: A Mixed Picture
Kelly Services Inc. (NASDAQ:KELYA) reported its results for the third quarter. Kelly Services is a global workforce solutions provider operating in all major markets throughout the world. It assigns professional and technical employees in the fields of creative services, education, legal, and health care.
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Kelly Services Inc. Earnings Cheat Sheet
Results: Net income for Kelly Services Inc. fell to $16.6 million (43 cents per share) vs. $19.7 million (52 cents per share) a year earlier. This is a decline of 15.7% from the year-earlier quarter.
Revenue: Fell 3.9% to $1.35 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Kelly Services Inc. beat the mean analyst estimate of 34 cents per share. Analysts were expecting revenue of $1.38 billion.
Quoting Management: Commenting on the third quarter results, Camden stated, “Amidst challenging global economic conditions and a sluggish U.S. labor market, Kelly delivered solid third quarter results. We are very pleased that we were able to improve gross profit, keep expenses in line, and create leverage to improve our operating earnings by nearly nine percent year-over-year, despite a deceleration in revenue.”
The company has now surpassed analyst estimates for four quarters in a row. It beat the mark by 5 cents in the second quarter, by 6 cents in the first quarter, and by 21 cents in the fourth quarter of the last fiscal year.
The company’s net income has fallen in each of the last two quarters. In the second quarter, net income fell 20.2% from the year-earlier quarter.
Revenue has dropped in the past two quarters. In the second quarter, revenue declined 2.8% to $1.37 billion from the year-earlier quarter.
Looking Forward: Expectations for the fourth quarter have not changed from 41 cents. The average estimate for the fiscal year is $1.34 per share, a rise from $1.30 ninety days ago.
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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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