KELYB Earnings Prediction
The chart below shows how KELYB performed 10 days before and after its earnings report, based on data from the past quarters. Typically, KELYB sees a +1.31% change in stock price 10 days leading up to the earnings, and a -12.88% change 10 days following the report. On the earnings day itself, the stock moves by -3.08%. This data can give you a slight idea of what to expect for the next quarter's release.
KELYB Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.05B
-17.60%
-15.18%
Gross Margin
19.68%
-1.75%
1.81%
Operating Margin
1.67%
29.46%
12.08%
Net Margin
2.47%
187.21%
165.59%
EPS
0.70
141.38%
125.81%
No Data Available
KELYB Earnings Analysis
Kelly Services, Inc. Corporation (KELYB.O) Earnings Conference Call
Positive
- The acquisition of Motion Recruitment Partners will significantly strengthen Kelly's staffing and consulting solutions in North America and globally, leading to increased market share and revenue growth potential.
- The acquisition will enhance Kelly's EBITDA margin expansion and accelerate profitability, demonstrating the company's commitment to inorganic investments in higher-margin, higher-growth specialties.
- Kelly's adjusted EBITDA margin improved to 3.2% in the first quarter, showcasing the company's progress in driving significant efficiency and bottom line growth.
- Revenue in the Education segment continues to show strong growth, up 16% year-over-year, driven by net new customer wins and demand from existing customers.
- Gross profit rate improved by 90 basis points and SG&A expenses were down 22% year-over-year, highlighting the positive impact of the ongoing transformation efforts on financial performance.
- The reported earnings from operations in the first quarter improved by 34% over the prior year, demonstrating operational effectiveness and cost management.
- Cash balance of $201 million with no debt outstanding provides financial stability and flexibility for future investments and strategic initiatives.
- The expected closing of the Motion Recruitment Partners acquisition in the second quarter will be funded by cash on hand and existing credit facilities, reflecting Kelly's strong balance sheet and liquidity management.
- Kelly's outlook for the second quarter expects revenue to be up 1% to 2% on an organic basis, indicating a consistent revenue trend and improved efficiency, with an expected adjusted EBITDA margin of about 3.3%.
Negative
- Revenue for the first quarter of 2024 totaled $1.05 billion compared to $1.27 billion in 2023, down 17.6% primarily from the sale of the European staffing business
- On an organic basis, revenue declined 2.6% in the quarter, reflecting a continuation of staffing market headwinds
- Year-over-year declines in RPO and MSP revenues continued, impacting revenue in the OCG segment
- Decline in perm fees by 23% impacting overall revenue growth
- Overall gross profit was 19% as reported or 8% on an organic basis, with GP rate declining to 19.7%
- SG&A expenses were down 22% year-over-year on a reported basis and 10% on an organic basis, reflecting restructuring charges and expenses related to the sale of European staffing operations
- Q2 revenue expected to be up only 1% to 2% on an organic basis, with no significant FX impact
- GP rate expected to decline to between 20.1% to 20.3% in the second quarter
- Adjusted EBITDA margin expected to be about 3.3% for Q2, an improvement of 120 basis points versus Q2 of last year or 80 basis points on an organic basis
