Movers and SHAKERS
Kelly Services Inc. (KELYA)
Reports First Quarter Results. What Will COVID-19 Impact Be?
Kelly Services Inc is a provider of workforce solutions and consulting and staffing services. The company's operations are divided into three business segments namely Americas Staffing, Global Talent Solutions ("GTS") and International Staffing. It provides staffing solutions through its branch networks in Americas and International operations and also provides a suite of innovative talent fulfilment and outcome-based solutions through GTS segment. Americas Staffing generates maximum revenue from its operations.
Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.
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1Q20 Results. Kelly Services reported revenue of $1.26 billion for the first quarter, down 8.8%, year-over-year. Reported net loss was $153.2 million or $3.91 per share. Included in the net loss is a $147.7 million impairment charge, a $77.8 million loss on Persol investment, $8.7 million of restructuring charges, and a $32.1 million gain from the HQ sale. Adjusted EPS came in at $0.20 versus an adjusted $0.45 in the prior year period.
COVID-19 Impact. During the quarter, management estimates COVID-19 accounted for 270 basis points of the year-over-year decline in revenue for the quarter. We anticipate the COVID-19 impact to be significantly greater in the second quarter with a lessening of the impact going forward dependent upon the timing and particulars of any economic re-opening. The Insight acquisition contributed 110 bp of...
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.