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Kelly Services (KELYA) – A Productive Start to the Year

Financial Services
0 min read

Friday, May 13, 2022

Kelly Services (KELYA)
A Productive Start to the Year

Kelly (Nasdaq: KELYA, KELYB) connects talented people to companies in need of their skills in areas including Science, Engineering, Education, Office, Contact Center, Light Industrial, and more. We’re always thinking about what’s next in the evolving world of work, and we help people ditch the script on old ways of thinking and embrace the value of all workstyles in the workplace. We directly employ nearly 350,000 people around the world and connect thousands more with work through our global network of talent suppliers and partners in our outsourcing and consulting practice. Revenue in 2021 was $4.9 billion. Visit kellyservices.com and let us help with what’s next for you.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

1Q22. Revenue of $1.296 billion was up 7.5% year-over-year (9% in constant currency). Consensus was $1.26 billion and we were also at $1.26 billion. Kelly reported operating earnings of $23.4 million, compared to $10.6 million a year ago. We were at $11.0 million. GAAP loss per share was $1.23 compared to GAAP net income of $0.64/sh. Adjusted EPS for the first quarter was $0.46 versus $0.12 last year. We had projected adjusted EPS of $0.23.

GP Rate Continues to Improve. Management has done a masterful job of increasing gross profit rate over the years, even in the face of the recent economic hardships, including COVID. GP rate for the quarter was 19.9%, up 220 basis points y-o-y. The improvement has come from a combination of steps to improve organic GP and the addition of higher margin specialty business through recent acquisitions. We believe GP rate can continue to increase….

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. 

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