Kelly Services (NASDAQ:KELYA) Issues Quarterly Earnings Results, Misses Estimates By $0.04 EPS

Key Points

• Kelly Services missed earnings expectations, reporting $0.03 EPS versus the $0.07 consensus estimate. Revenue came in at $1.04 billion, slightly above forecasts of $1.02 billion.
• The stock rose after the report, trading up to $9.87 on heavier-than-average volume. Kelly Services remains well below its 52-week high of $14.94.
• The company continues to pay a dividend and attract insider buying, with a quarterly dividend of $0.075 per share set to be paid June 2, and executives recently purchasing additional shares.

Kelly Services (NASDAQ:KELYA - Get Free Report) announced its quarterly earnings results on Thursday. The business services provider reported $0.03 earnings per share for the quarter, missing the consensus estimate of $0.07 by ($0.04), Zacks reports. Kelly Services had a negative net margin of 6.44% and a positive return on equity of 3.07%. The business had revenue of $1.04 billion during the quarter, compared to the consensus estimate of $1.02 billion.

Kelly Services Stock Performance

NASDAQ:KELYA traded up $0.17 on Friday, reaching $9.87. 579,837 shares of the company's stock were exchanged, compared to its average volume of 362,076. Kelly Services has a 52 week low of $7.98 and a 52 week high of $14.94. The firm has a market cap of $337.65 million, a price-to-earnings ratio of -1.30, a P/E/G ratio of 0.71 and a beta of 0.79. The company has a debt-to-equity ratio of 0.13, a current ratio of 1.59 and a quick ratio of 1.54. The stock has a fifty day simple moving average of $9.11 and a 200-day simple moving average of $9.48.

Kelly Services Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, June 2nd. Shareholders of record on Monday, May 18th will be given a dividend of $0.075 per share. This represents a $0.30 dividend on an annualized basis and a yield of 3.0%. The ex-dividend date is Monday, May 18th. Kelly Services's dividend payout ratio (DPR) is currently -4.13%.

Insider Transactions at Kelly Services

In other news, CEO Christopher D. Layden purchased 10,100 shares of the stock in a transaction dated Tuesday, March 24th. The shares were purchased at an average cost of $8.80 per share, with a total value of $88,880.00. Following the completion of the acquisition, the chief executive officer owned 382,513 shares in the company, valued at $3,366,114.40. This represents a 2.71% increase in their position. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, Director James Christopher Hunt purchased 4,000 shares of the business's stock in a transaction on Wednesday, February 25th. The stock was bought at an average cost of $9.30 per share, with a total value of $37,200.00. Following the purchase, the director owned 29,976 shares in the company, valued at approximately $278,776.80. This represents a 15.40% increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. Over the last three months, insiders bought 35,200 shares of company stock worth $327,137. Insiders own 5.40% of the company's stock.

Institutional Investors Weigh In On Kelly Services

Institutional investors have recently bought and sold shares of the stock. The Manufacturers Life Insurance Company increased its stake in shares of Kelly Services by 8.2% in the second quarter. The Manufacturers Life Insurance Company now owns 11,949 shares of the business services provider's stock worth $140,000 after buying an additional 905 shares during the period. Quarry LP increased its stake in shares of Kelly Services by 173.2% in the third quarter. Quarry LP now owns 1,970 shares of the business services provider's stock worth $26,000 after buying an additional 1,249 shares during the period. Police & Firemen s Retirement System of New Jersey increased its stake in shares of Kelly Services by 14.7% in the fourth quarter. Police & Firemen s Retirement System of New Jersey now owns 10,706 shares of the business services provider's stock worth $94,000 after buying an additional 1,369 shares during the period. Man Group plc increased its stake in shares of Kelly Services by 6.6% in the second quarter. Man Group plc now owns 24,780 shares of the business services provider's stock worth $290,000 after buying an additional 1,532 shares during the period. Finally, Tower Research Capital LLC TRC increased its stake in shares of Kelly Services by 83.5% in the second quarter. Tower Research Capital LLC TRC now owns 4,324 shares of the business services provider's stock worth $51,000 after buying an additional 1,967 shares during the period. 76.34% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several analysts have recently issued reports on the stock. Zacks Research upgraded shares of Kelly Services from a "strong sell" rating to a "hold" rating in a research note on Monday, April 20th. Barrington Research reduced their target price on shares of Kelly Services from $16.00 to $15.00 and set an "outperform" rating for the company in a research note on Friday, February 13th. Weiss Ratings reiterated a "sell (d)" rating on shares of Kelly Services in a research note on Tuesday, April 21st. Finally, Wall Street Zen upgraded shares of Kelly Services from a "sell" rating to a "hold" rating in a research note on Sunday, February 22nd. Two equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $15.00.

About Kelly Services

Kelly Services, Inc is a global workforce solutions provider specializing in talent acquisition and staffing services across a wide range of industries. The company offers temporary staffing, permanent placement, outsourcing solutions, and consulting services to help organizations address their workforce needs. Its service offerings are designed to support clients in areas such as administrative support, information technology, engineering, science, education, healthcare, and industrial sectors.

Founded in 1946 by William Russell Kelly, Kelly Services has grown from a small local staffing firm into an international organization.

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