Kelly Services Inc. Fourth Quarter Earnings Sneak Peek

Kelly Services, Inc. (NASDAQ:KELYA) will unveil its latest earnings on Thursday, February 2, 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 estimate of analysts is for net income of 43 cents per share, a rise of 10.3% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 45 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 43 cents during the last month. For the year, analysts are projecting profit of $1.61 per share, a rise of 87.2% from last year.

Past Earnings Performance: Last quarter, the company beat estimates by 10 cents, coming in at net income of 52 cents a share versus the estimate of profit of 42 cents a share. It marked the fourth straight quarter of beating estimates.

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Wall St. Revenue Expectations: On average, analysts predict $1.41 billion in revenue this quarter, a rise of 6% from the year ago quarter. Analysts are forecasting total revenue of $5.56 billion for the year, a rise of 12.3% from last year’s revenue of $4.95 billion.

Analyst Ratings: three out of four analysts surveyed (75%) have a buy rating on Kelly Services.. This is below the mean analyst rating of 10 competitors, which average 78% buy ratings.

A Look Back: In the third quarter, profit rose more than twofold to $19.7 million (52 cents a share) from $9.6 million (26 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 9.7% to $1.41 billion from $1.28 billion.

Key Stats:

Revenue has risen the past four quarters. Revenue rose 16.2% in the second quarter from the year earlier, climbed 18.5% in the first quarter from the year-ago quarter and 11% in the fourth quarter of the last fiscal year.

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

Stock Price Performance: During November 29, 2011 to January 27, 2012, the stock price had risen $3.62 (27.7%) from $13.09 to $16.71. 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, rising 32.6% (+$3.54) 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, falling 13.5% (-$2.36) over that span.

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

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