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Kelly Services Inc. (KELYA)
Withdraws Guidance; Moving to Market Perform
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.
Refer to the full report for the price target, fundamental analysis, and rating.
Withdraws Guidance. Yesterday, Kelly responded to the COVID-19 crisis with a series of proactive steps, including reduced compensation, temporary furloughs, reduction of discretionary expenses, a suspension of the $3 million quarterly dividend, a draw-down from Kelly's credit facility, and a withdrawal of full-year guidance.
Devil will be in the Details. While Kelly provided detail of the actions it is taking, details on the cost of such actions, potential cost savings, and the size of the draw-down were not provided. We expect management to provide a more in-depth picture on the May 4th first quarter earnings call not only on the actions taken but the...
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.