Kelly Services Beats Expectations But Takes A Step Back Anyway
Kelly Services (NAS: KELY.A) reported earnings on Aug. 8. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended July 1 (Q2), Kelly Services missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly and GAAP earnings per share dropped significantly.
Gross margins improved, operating margins expanded, net margins dropped.
Kelly Services logged revenue of $1.37 billion. The three analysts polled by S&P Capital IQ looked for net sales of $1.43 billion on the same basis. GAAP reported sales were 2.8% lower than the prior-year quarter's $1.41 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.34. The six earnings estimates compiled by S&P Capital IQ predicted $0.33 per share. GAAP EPS of $0.40 for Q2 were 20% lower than the prior-year quarter's $0.50 per share. (The prior-year quarter included -$0.03 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 16.3%, 30 basis points better than the prior-year quarter. Operating margin was 1.7%, 30 basis points better than the prior-year quarter. Net margin was 1.1%, 20 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.42 billion. On the bottom line, the average EPS estimate is $0.41.
Next year's average estimate for revenue is $5.60 billion. The average EPS estimate is $1.38.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Kelly Services is outperform, with an average price target of $21.00.
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The article Kelly Services Beats Expectations But Takes A Step Back Anyway originally appeared on Fool.com.Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.