While the consensus price target is a much-coveted metric for investors, solely banking on this metric to make an investment decision may not be wise at all. That's because the ability and unbiasedness of analysts in setting price targets have long been questionable. While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why? There has been incr ...

This staffing company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 45.42%. Price and EPS Surprise Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high a ...

Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they believe are being undervalued by the market at large. One company to watch right now is Kelly Services (KELYA) . KELYA is currently sporting a Zacks Rank of #1 (Strong Buy), as well as a Value grade of A. The stock is trading with a P/E ratio o ...

The fourth annual global workforce report from Kelly, titled Building a Resilient Workforce in the Age of AI, has revealed Australian businesses have the lowest capability and resilience score out of 13 countries surveyed. One in two Australian executives (49%) find it difficult to source and retain the right talent, resulting in missed business opportunities, while only 43% believe AI will be critical to strengthening the capability of their workforce, the lowest percentage in the 13 countries surveyed. "A ...

BOSTON, June 12, 2024 /PRNewswire/ -- Keystone Partners, a Silver Oak Services Partners LLC portfolio company, announced that it has acquired The Ayers Group, a leader in executive coaching, leadership development and outplacement services, from Kelly Services, Inc. This strategic acquisition further broadens Keystone's capacity to deliver exceptional career management and leadership transformation solutions in the New York metropolitan area. Founded in 1975 and headquartered in New York City, The Ayers Gro ...

TROY, Mich., June 12, 2024 (GLOBE NEWSWIRE) -- Kelly (NASDAQ:KELYA, KELYB))), a leading global specialty talent solutions provider, has completed the sale of Ayers Group, a division of KellyOCG, to Keystone Partners, a Silver Oak Services Partners LLC portfolio company. Ayers Group provides outplacement, executive coaching, and leadership development solutions to employers across a wide range of industries. Terms of the sale were not disclosed. The sale of Ayers Group is the latest in a series of strategic ...

Workers attribute this failure to their employers, citing a lack of skills development and career progression as their top frustrations. Notably, women say they are at a disadvantage in terms of career opportunities and are more likely to leave their current roles than men (34% vs. 20%). Workers who identify as being part of a minority group are nearly twice as likely to say they plan to quit in the next 12 months. Executives recognize these frustrations and acknowledge inadequate skill development and care ...

Kelly acquired MRP for a purchase price of $425 million. Additional cash consideration of up to $60 million may be due in the second quarter of 2025 if certain conditions are satisfied during an earn-out period ending on March 31, 2025. The earn-out payment is based on a multiple of gross profit in excess of an agreed-upon amount during the earn-out period. The Company funded the transaction through debt and available capital, including the rapid redeployment of more than $100 million from the sale of Kelly ...

Financial Data and Key Metrics Changes - Adjusted earnings per share (EPS) for Q1 2024 was $0.56, a 33% increase from $0.42 in Q1 2023 [1] - Reported earnings per share for Q1 2024 was $0.70 compared to $0.29 in 2023, including a $0.14 gain from the sale of European staffing operations [28] - Adjusted EBITDA margin improved to 3.2% in Q1 2024, up 110 basis points from the previous year [52] Business Line Data and Key Metrics Changes - Revenue in the Professional & Industrial segment declined 11% year-over-year in Q1 2024 [48] - Permanent placement fees decreased by 23% due to lower demand [23] - Revenue from the Education segment grew by 16% year-over-year, reflecting strong demand [112] Market Data and Key Metrics Changes - Overall revenue for Q1 2024 was $1.05 billion, down 17.6% from $1.27 billion in 2023, primarily due to the sale of the European staffing business [47] - On an organic basis, revenue declined by 2.6% in Q1 2024, indicating ongoing staffing market headwinds [47] - The gross profit rate was 19.7% in Q1 2024, a slight decline from 20% in the prior year [15] Company Strategy and Development Direction - The acquisition of Motion Recruitment Partners (MRP) for $425 million aims to enhance Kelly's scale and capabilities in technology, telecommunications, and government specialties [10][18] - The company is focused on transforming its business to improve efficiency and profitability, with a commitment to redeploy capital into higher-margin, higher-growth specialties [12][20] - Kelly aims to leverage its strong balance sheet to pursue additional inorganic growth opportunities while managing liquidity [30][91] Management's Comments on Operating Environment and Future Outlook - Management noted that the macroeconomic environment remains challenging, with no significant changes expected in the near term [77][96] - There is optimism regarding the potential recovery in the staffing market, with expectations for improved efficiency and growth when conditions stabilize [32][90] - The company anticipates a consistent revenue trend for Q2 2024, with organic growth projected to be between 1% to 2% [55] Other Important Information - SG&A expenses decreased by 22% year-over-year on a reported basis, reflecting the impact of restructuring and transformation efforts [105] - The company reported cash of $201 million at the end of the quarter, with no debt outstanding, indicating strong financial health [29] Q&A Session Summary Question: Can you provide details on the acquisition and its revenue contribution? - Management indicated that MRP's revenue exceeds $500 million, which is expected to significantly impact Kelly's growth and value profile [37] Question: What are the expectations for organic growth in the second quarter? - Management attributed the expected organic growth to the traction gained from transformation-related initiatives [68] Question: How is the talent supply environment affecting operations? - Management noted that the labor force participation rate and other key labor factors remain flat, with no significant changes anticipated in Q2 [77] Question: What is the outlook for the gross margin? - Management expects a gross margin improvement to around 20.2% in Q2, driven by a favorable mix in the business [95] Question: Are there plans for further acquisitions after MRP? - Management confirmed that while MRP is a significant acquisition, they remain open to pursuing additional high-quality assets as opportunities arise [98][99]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 No Change Commission File Number 0-1088 KELLY SERVICES, INC. --------------------------------------------------------------------- (Exact name of registrant as specified in its charter) (State or othe ...