Kelly Services Second Quarter Earnings Sneak Peek

Kelly Services, Inc. (NASDAQ:KELYA) will unveil its latest earnings on Wednesday, August 8, 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 profit of 29 cents per share, a decline of 47.3% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 36 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 29 cents during the last month. Analysts are projecting profit to rise by 25.6% compared to last year’s $1.34.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 6 cents, reporting net income of 24 cents per share against a mean estimate of profit of 18 cents per share.

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A Look Back: In the first quarter, profit rose 772.7% to $9.6 million (26 cents a share) from $1.1 million (3 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 1.2% to $1.35 billion from $1.34 billion.

Analyst Ratings: With two analysts rating the stock as a buy, none rating it as a sell and two rating it as a hold, there are indications of a bullish outlook.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.58 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company regressed in this liquidity measure from 1.6 in the fourth quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 5.5% to $735.8 million while assets rose 4.5% to $1.16 billion.

Key Stats:

This upcoming earnings announcement will be a chance to build on positive earnings momentum over the last three quarters. Net income rose more than twofold in the third quarter of the last fiscal year and 65.1% in the fourth quarter of the last fiscal year before increasing again in the first quarter.

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 16.2% in the second quarter of the last fiscal year, 9.7% in the third quarter of the last fiscal year and 5.3% in the fourth quarter of the last fiscal year before increasing again in the first quarter.

Wall St. Revenue Expectations: Analysts are projecting no change in revenue from the year-earlier quarter to $1.41 billion.

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

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