Why Kelly Services' Shares Dropped
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of staffing company Kelly Services fell as much as 12% today after the company reported earnings.
So what: Revenue fell 1.5% from a year ago to $1.38 billion but was slightly ahead of Wall Street estimates. Investors are focusing on the bottom line today, where adjusted earnings per share were $0.33, a penny below expectations.
Now what: The one-penny earnings miss may not seem like a lot, but when a company's revenue is declining, investors pay special attention to margins and the bottom line. Management says it is positioned well in the highly skilled market but isn't very bullish on job growth short-term, so there's reason to be cautious. I don't see either the earnings improvement or the value to buy today, so I'm staying away from the stock.
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The article Why Kelly Services' Shares Dropped originally appeared on Fool.com.Fool contributor Travis Hoium has no position in any stocks mentioned. Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.The Motley Fool has no position in any of the stocks mentioned. 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.
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