Kelly Services Earnings: Exceeds Forecasts with Big Profit Boost
Kelly Services Inc. (NASDAQ:KELYA) reported net income above Wall Street’s expectations for the first 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 Earnings Cheat Sheet for the First Quarter
Results: Net income for Kelly Services Inc. rose to $9.2 million (24 cents per share) vs. $1.1 million (3 cents per share) in the same quarter a year earlier. This marks a substantial increase from the year-earlier quarter.
Revenue: Rose 4.5% to $1.4 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Kelly Services Inc. beat the mean analyst estimate of 18 cents per share. Analysts were expecting revenue of $1.38 billion.
Quoting Management: Commenting on the first quarter results, Camden stated, “We are pleased to report solid quarterly performance in spite of the economic challenges that continue to test the sustainability of this recovery. By staying focused on our strategy, we were able to leverage a leaner cost structure, improve our gross profit rate, and increase earnings.”
The company has now surpassed analyst estimates for four quarters in a row. It beat the mark by 21 cents in the fourth quarter of the last fiscal year, by 10 cents in the third quarter of the last fiscal year, and by 29 cents in the second quarter of the last fiscal year.
Revenue has increased for four consecutive quarters. Revenue increased 5.3% to $1.4 billion in the fourth quarter of the last fiscal year. The figure rose 9.7% in the third quarter of the last fiscal year from the year earlier and climbed 16.2% in the second quarter of the last fiscal year from the year-ago quarter.
Looking Forward: The average estimate for the second quarter remains unchanged at 36 cents a share. For the fiscal year, the average estimate has been unchanged at $1.36 a share.
(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)
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