Kelly Services Inc. Third Quarter Earnings Sneak Peek

Kelly Services, Inc. (NASDAQ:KELYA) will unveil its latest earnings on Wednesday, November 9, 2011. 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 profit of 43 cents per share, a rise of 38.7% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 37 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 43 cents during the last month. For the year, analysts are projecting net income of $1.54 per share, a rise of 79.1% from last year.

Past Earnings Performance: Last quarter, the company beat estimates by 29 cents, coming in at profit of 55 cents a share versus the estimate of net income of 26 cents a share. It marked the fourth straight quarter of beating estimates.

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Wall St. Revenue Expectations: On average, analysts predict $1.43 billion in revenue this quarter, a rise of 11.7% from the year ago quarter. Analysts are forecasting total revenue of $5.55 billion for the year, a rise of 12.1% 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 83% buy ratings.

A Look Back: In the second quarter, profit rose more than fourfold to $18.8 million (50 cents a share) from $3.9 million (11 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 16.2% to $1.41 billion from $1.21 billion.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 17%, with the biggest boost coming in the third quarter of the last fiscal year when revenue rose 22.4% from the year earlier quarter.

Competitors to Watch: ManpowerGroup (NYSE:MAN), Robert Half Intl. Inc. (NYSE:RHI), Kelly Services, Inc. (NASDAQ:KELYA), SFN Group Inc (NYSE:SFN), Volt Information Sciences, Inc. (VISI), Barrett Business Services, Inc. (NASDAQ:BBSI), Kforce Inc. (NASDAQ:KFRC), Hudson Highland Group, Inc. (NASDAQ:HHGP), TrueBlue, Inc. (NYSE:TBI), Mastech Holdings, Inc. (AMEX:MHH), and General Employment Enterprises, Inc. (AMEX:JOB).

Stock Price Performance: During October 6, 2011 to November 3, 2011, the stock price had risen $3.36 (26.2%) from $12.80 to $16.16. 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% (+$3.55) 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% (-$2.37) over that span. Shares are down $2.58 (-13.8%) year to date.

(Source: Xignite Financials)

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

 

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