NASDAQ$KELYA
Kelly Services Inc · Q2 2023 earnings
Q2 2023 earnings · · Investor relations
Briefing
Kelly Services' Q2 2023 results reflected a revenue decrease of 3.9% and operating earnings of $6.2 million, impacted by transformation-related charges, while focusing on resilient markets and higher-margin solutions.
Kelly Services reported a 3.9% decrease in revenue to $1.2 billion for Q2 2023, with operating earnings at $6.2 million, which included $8.0 million in transformation-related charges. Adjusted earnings per share were $0.36, a 20% decrease year-over-year. The company is focused on business transformation to improve EBITDA margin.
- Q2 revenue decreased by 3.9%, or 4.5% in constant currency, with organic revenue down 2.2% in constant currency.
- Gross profit decreased by 8.3%, with the gross profit rate at 19.8%, down 90 bps year-over-year.
- Operating earnings were $6.2 million, including $8.0 million in transformation-related restructuring and impairment charges; adjusted operating earnings totaled $14.2 million.
- The business transformation program is expected to drive meaningful improvement in EBITDA margin starting in the second half of 2023.
Headline financials
Revenue & EPS history
Kelly Services · Revenue · Quarterly
$1.22B
Revenue by segment
Kelly Services · $508M total across 2 segments · Q2 2023
- Science, Engineering & Technology$301M-7.1%59.4%
- Education$206M+32.7%40.6%
Forward guidance
Kelly Services expects an adjusted EBITDA margin of approximately 3% exiting 2023, and a normalized, adjusted EBITDA margin in the range of 3.3% to 3.5% assuming a full year of transformation-related savings and no change in current top-line expectations.
Tailwinds
- Efficiency actions implemented to date will deliver an immediate, meaningful improvement to the company's EBITDA margin.
- Transformation is creating a strong foundation for further EBITDA margin expansion going forward.
- Actions unlocking additional resources to invest in the company's future.
- Company is quickly shifting focus to the growth phase of its transformation.
- Company aims to realize the full potential of its specialty strategy.
Headwinds
- Ongoing macroeconomic uncertainty became more noticeable in certain parts of the company's portfolio.
- Lower demand for temporary and permanent placement services impacted results in the P&I and SET segments.
- Adjusted earnings declined year-over-year primarily as a result of lower revenues.
- Year-over-year revenue trends were impacted by customers’ more guarded approach to hiring.
- Gross profit decreased by 8.3%.
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 Q2 2023
-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
| Quarter | Report date | Reaction (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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