NASDAQ$KELYA
Kelly Services Inc · Q3 2023 earnings
Q3 2023 earnings · · Investor relations
Briefing
Reported break-even operating earnings and a 4.3% decrease in revenue, with adjusted EBITDA margin increasing to 2.3%.
Kelly Services reported break-even operating earnings in Q3 2023, compared to a loss of $21.4 million in Q3 2022. Revenue decreased by 4.3% to $1.1 billion. Adjusted EBITDA margin increased to 2.3% from 1.6% in the prior year.
- Q3 operating earnings were break-even, or up 60% to $15.5 million on an adjusted basis.
- Q3 revenue down 4.3%; down 5.8% in constant currency.
- Q3 adjusted EBITDA margin increased to 2.3% compared to 1.6% in the prior year driven by meaningful reduction in operating expenses resulting from business transformation initiative.
- Company expects sale of European staffing operations and near-term outcome from growth initiatives to drive further expansion of adjusted EBITDA margin
Headline financials
Revenue & EPS history
Kelly Services · Revenue · Quarterly
$1.12B
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 expects to achieve an adjusted EBITDA margin in the range of 2.8% to 3.0% for Q4 2023 and expects to reach a normalized, adjusted EBITDA margin in the range of 3.3 to 3.5%.
Tailwinds
- Efficiency phase of transformation on-track
- Growth initiatives delivering encouraging early results
- Sale of European staffing business poised to benefit transformation efforts
- Committed to driving continued improvement of adjusted EBITDA margin
- Committed to maximizing value creation
Headwinds
- Market conditions are more challenging than anticipated
- Macroeconomic uncertainty continued to temper demand for temporary and permanent staffing services
- Customers’ more guarded approach to hiring
- Customers initiating new projects or capital spending
- SET and P&I reflected challenges
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 Q3 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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