NASDAQ$KELYA

Kelly Services Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Kelly Services' first quarter earnings decreased due to the sale of European staffing operations, but adjusted EBITDA margin improved driven by reduced operating expenses.

Kelly Services reported a decrease in revenue for Q1 2024 due to the sale of its European staffing operations, but operating earnings increased significantly. The company's adjusted EBITDA margin also improved due to cost management efforts. They anticipate further margin expansion with the acquisition of Motion Recruitment Partners.

  • Q1 operating earnings increased by 34% on an adjusted basis.
  • Q1 revenue decreased following the sale of European staffing operations, with a 2.6% decrease on an organic basis.
  • Adjusted EBITDA margin increased by 110 basis points to 3.2% due to reduced operating expenses.
  • Company expects further EBITDA margin expansion from the acquisition of Motion Recruitment Partners in Q2 2024 and ongoing transformation actions.

Headline financials

Total Revenue

$1.05B

Previous: $1.27B-17.6%
EPS

$0.70

Previous: $0.40+75.0%
Gross Profit Rate

19.7%

No prior period
Permanent Placement Income

$8M

No prior period
Adjusted EBITDA

$33.3M

No prior period
Adjusted EBITDA Margin

3.2%

No prior period
Effective Income Tax Rate

13.5%

No prior period
Capital Expenditures

-$3.7M

No prior period
Free Cash Flow

$25.8M

Previous: $10.9M+136.7%
Net Income

$25.8M

Previous: $10.9M+136.7%
Operating Income

$26.8M

Previous: $10.7M+150.5%
Gross Profit

$206M

Previous: $254M-19.0%
Stock-Based Comp

$2.8M

Previous: $3.1M-9.7%

Revenue & EPS history

Kelly Services · Revenue · Quarterly

$1.05B

Q1 2024-17.6%vs Q1 2023
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Kelly Services · $508M total across 2 segments · Q2 2023

  • Science, Engineering & Technology
    $301M-7.1%
  • Education
    $206M+32.7%

Forward guidance

The company anticipates further expansion of EBITDA margin from the planned Q2 2024 acquisition of Motion Recruitment Partners, LLC (MRP) and ongoing transformation actions.

Tailwinds

  • Further expansion of EBITDA margin expected from the planned Q2 2024 acquisition of Motion Recruitment Partners, LLC (MRP).
  • Ongoing transformation actions will contribute to EBITDA margin expansion.
  • Acquisition of MRP will strengthen Kelly’s scale and capabilities.
  • Acquisition will meaningfully increase market share across several key areas.
  • The acquisition creates exciting opportunities for future revenue growth.

Headwinds

  • Continued macroeconomic uncertainty.
  • Industry headwinds.
  • Continuing impact of customers’ more guarded approach to hiring.
  • Customers initiating new projects or capital spending cautiously.
  • Changing market and economic conditions

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

-0.1%

Avg return

Earnings day

-0.3%

Avg return

5 days after

-2.6%

Avg return

30 days after

50%

31 / 62 earnings

Positive

+26.2%

Q4 2021

Best reaction

-25.8%

Q3 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.0%+0.3%+20.2%
Q4 2025-1.3%-5.7%-13.9%
Q3 2025-17.7%-23.3%-25.5%
Q1 2025+10.0%+8.7%+4.6%
Q4 2024+7.2%+1.3%+0.0%
Q3 2024-25.8%-28.3%-35.6%
Q2 2024-4.9%-0.2%-2.1%
Q1 2024-1.3%-3.5%-8.0%
Q4 2023+7.2%+9.5%+13.7%
Q3 2023+6.0%+10.2%+15.0%
Q2 2023-5.8%-4.6%-1.4%
Q1 2023+11.8%+11.3%+12.7%
Q4 2022-7.9%-6.9%-16.1%
Q3 2022+12.5%+6.9%-0.9%
Q2 2022-17.6%-17.9%-31.4%
Q1 2022-2.3%+4.5%+3.9%
Q4 2021+26.2%+26.0%+23.9%
Q3 2021-8.4%-11.2%-17.2%
Q2 2021-6.6%-14.1%-20.2%
Q1 2021+2.4%+1.6%+0.6%
Q4 2020-1.9%+4.5%+5.1%
Q3 2020-1.0%+15.8%+25.2%
Q2 2020+6.9%+20.9%+15.7%
Q1 2020-9.4%-9.4%+3.9%
Q4 2019+11.1%+5.5%-28.9%
Q3 2019-10.9%-11.5%-11.2%
Q2 2019+4.3%+4.5%-11.7%
Q1 2019+9.8%+8.9%+6.4%
Q4 2018+2.9%+6.5%-8.0%
Q3 2018-3.3%-6.1%-16.8%
Q2 2018+0.3%+0.7%+3.1%
Q1 2018-20.3%-30.0%-25.3%
Q4 2017+2.7%+3.0%+1.2%
Q3 2017+8.2%+10.7%+9.3%
Q2 2017-1.0%-1.2%+0.6%
Q1 2017+0.9%+8.4%+5.6%
Q4 2016+0.0%-5.2%-3.9%
Q3 2016-3.0%+6.3%+14.4%
Q2 2016-7.5%-6.7%-9.7%
Q1 2016+2.8%
Q4 2015+2.6%
Q3 2015+5.0%
Q2 2015-4.5%
Q1 2015+0.7%
Q4 2014+8.3%
Q3 2014-10.1%
Q2 2014-4.8%
Q1 2014-8.1%
Q4 2013+0.8%
Q3 2013-2.0%
Q2 2013-3.4%
Q1 2013+0.2%
Q4 2012-4.6%
Q3 2012-5.8%
Q2 2012+11.9%
Q1 2012+5.2%
Q4 2010+4.2%
Q3 2010-6.9%
Q2 2010+13.8%
Q4 2011+13.8%
Q1 2011+0.6%
Q1 2010+4.2%

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