Kelly Services Earnings: Swinging to a Profit

Kelly Services, Inc. (NASDAQ:KELYA) reported its results for the first quarter. Kelly Services, Inc. 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: Swung to a profit of $1.1 million (3 cents/diluted share) in the quarter. The Kelly Services, Inc. had a net loss of $2 million or a loss 6 cents per share in the year earlier quarter.

Revenue: Rose 18.5% to $1.34 billion YoY.

Actual vs. Wall St. Expectations: KELYA reported adjusted net income of of 14 cents/share. By that measure, the company beat the mean estimate of 12 cents/share. Estimates ranged from 3 cents per share to 18 cents per share.

Quoting Management: Commenting on the first quarter results, Carl T. Camden, President and Chief Executive Officer stated, “We continue to see evidence of a solid, sustainable economic recovery. Kelly’s revenue growth for the period certainly confirms that we are on track for a profitable year.” Camden added, “Until full confidence is restored, and employers remain cautious about ramping up too aggressively, this environment seems to favor the staffing industry — and we intend to capitalize on the opportunities presented. “Going forward, Kelly is committed to improving our competitive position and enhancing shareholder value by delivering customer-focused workforce solutions — spanning traditional staffing, professional and technical offerings, and outsourcing and consulting services, and maintaining talent excellence throughout our company.”

Key Stats:

Over the last five quarters, revenue has increased 15.6% on average year over year. The biggest increase came in the third quarter of the last fiscal year, when revenue rose 22.4% from the year earlier quarter.

Competitors to Watch: SFN Group Inc (NYSE:SFN), Barrett Business Services, Inc. (NASDAQ:BBSI), Robert Half Intl. Inc. (NYSE:RHI), Kforce Inc. (NASDAQ:KFRC), TrueBlue, Inc. (NYSE:TBI), COMFORCE Corporation (CFS), ManpowerGroup (NYSE:MAN), ClearPoint Business Resources, Inc. (CPBRQ), Volt Information Sciences, Inc. (NYSE:VOL), and On Assignment, Inc. (NASDAQ:ASGN)

Stock Performance: Shares of KELYA are unchanged from the previous close of $19.59.

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