Kelly Services First Quarter Earnings Sneak Peek

Kelly Services, Inc. (NASDAQ:KELYA) will unveil its latest earnings on Wednesday, May 9, 2012. 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.

Kelly Services, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 18 cents per share, a rise of 28.6% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 22 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 18 cents during the last month. Analysts are projecting profit to rise by 24.4% versus last year to $1.36.

Past Earnings Performance: Last quarter, the company beat estimates by 21 cents, coming in at profit of 64 cents a share versus the estimate of net income of 43 cents a share. It marked the fourth straight quarter of beating estimates.

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Wall St. Revenue Expectations: On average, analysts predict $1.38 billion in revenue this quarter, a rise of 3% from the year-ago quarter. Analysts are forecasting total revenue of $5.68 billion for the year, a rise of 2.3% from last year’s revenue of $5.55 billion.

Analyst Ratings: Analysts are bullish on Kelly Services, as two analysts rate it as a buy, none rate it as a sell and two rate it as a hold.

A Look Back: In the fourth quarter of the last fiscal year, profit rose 65.1% to $24.1 million (64 cents a share) from $14.6 million (39 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 5.3% to $1.4 billion from $1.33 billion.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 18.5% in the first quarter of the last fiscal year, 16.2% in the second quarter of the last fiscal year and 9.7% in the third quarter of the last fiscal year before increasing again in the fourth quarter of the last fiscal year of the last fiscal year.

Stock Price Performance: Between February 7, 2012 and May 3, 2012, the stock price fell $2.29 (-14.3%), from $16 to $13.71. The stock price saw one of its best stretches over the last year between October 3, 2011 and October 12, 2011, when shares rose for eight straight days, increasing 32.6% (+$3.53) over that span. It saw one of its worst periods between May 31, 2011 and June 13, 2011 when shares fell for 10 straight days, dropping 13.5% (-$2.36) over that span.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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