Kelly Services, Inc. Earnings Cheat Sheet: Profit Rises More than Fourfold

Kelly Services, Inc. (NASDAQ:KELYA) reported net income above Wall Street’s expectations for the second 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 Second Quarter

Results: Net income for Kelly Services, Inc. rose to $18.8 million (50 cents per share) vs. $3.9 million (11 cents per share) in the same quarter a year earlier. This is a more than fourfold rise from the year earlier quarter.

Revenue: Rose 16.2% to $1.41 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: KELYA beat the mean analyst estimate of 25 cents per share. It beat the average revenue estimate of $1.37 billion.

Quoting Management: Commenting on the second quarter results, Carl T. Camden, President and Chief Executive Officer said, “We are pleased that Kelly completed a very strong second quarter, despite the slow moving recovery. Solid revenue growth coupled with our ability to effectively leverage a leaner cost structure resulted in improved earnings.” Camden added that Kelly will continue to focus on maximizing profits across all business lines by adhering to its disciplined operational management. “A concentration on specialized outsourcing services is also expected to contribute to profits going forward,” Camden said.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 17.1%, with the biggest boost coming in the third quarter of the last fiscal year when revenue rose 22.4% from the year earlier quarter.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 3 cents in the first quarter, by 16 cents in the fourth quarter of the last fiscal year, and by 14 cents in the third quarter of the last fiscal year.

Gross margins grew 0.2 percentage point to 16%. The growth seemed to be driven by increased revenue, as the figure rose 16.2% from the year earlier quarter while costs rose 16%.

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), Monster Worldwide (NYSE:MWW) ManpowerGroup (NYSE:MAN), Volt Information Sciences, Inc. (NYSE:VOL), and On Assignment, Inc. (NASDAQ:ASGN).

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(Source: Xignite Financials)