NASDAQ$KELYA

Kelly Services Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Kelly Services' Q2 2024 earnings were announced, revealing a mix of challenges and strategic progress.

Kelly Services reported Q2 2024 revenue of $1.06 billion, a 13.1% decrease year-over-year, primarily due to the sale of European staffing operations. However, revenue improved 0.6% on an organic basis. Operating earnings increased to $12.2 million from $6.2 million in the previous year, with adjusted earnings at $28.1 million. Adjusted EPS was $0.71, up from $0.36 in Q2 2023.

  • Revenue decreased by 13.1% year-over-year to $1.06 billion, impacted by the sale of European staffing operations.
  • Organic revenue grew by 0.6%, indicating stabilization in customer demand.
  • Operating earnings rose to $12.2 million, with adjusted earnings reaching $28.1 million.
  • Adjusted EBITDA margin increased by 170 basis points to 3.7%, driven by cost reductions and the sale of European operations.

Headline financials

Total Revenue

$1.06B

Previous: $1.22B-13.1%
EPS

$0.12

Previous: $0.36-66.7%
Gross Profit Rate

20.2%

Previous: 19.8%+2.0%
Permanent Placement Income

$10.7M

Previous: $15.7M-31.8%
Adjusted EBITDA

$40.5M

Previous: $24.6M+64.6%
Adjusted EBITDA Margin

3.8%

Previous: 2.0%+90.0%
Effective Income Tax Rate

19.4%

No prior period
Capital Expenditures

-$3M

No prior period
Free Cash Flow

$4.6M

Previous: $7.5M-38.7%
Net Income

$4.6M

Previous: $7.5M-38.7%
Operating Income

$12.2M

Previous: $6.2M+96.8%
Gross Profit

$214M

Previous: $241M-11.2%
Cash & Equivalents

$38.2M

Previous: $125M-69.4%
Total Assets

$2.63B

Previous: $2.6B+1.3%
Stock-Based Comp

$2.4M

Previous: $2.5M-4.0%

Revenue & EPS history

Kelly Services · Revenue · Quarterly

$1.06B

Q2 2024-13.1%vs Q2 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

Kelly expects further expansion of EBITDA margin from the May 31, 2024 acquisition of Motion Recruitment Partners, LLC ("MRP").

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 2024

Historical avgQ2 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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