Staffing firm Kelly's Q3 adjusted EPS misses estimates

Kelly Services

06/11/2025 12:45

Overview

Kelly Q3 revenue down 9.9% yr/yr, impacted by reduced demand in ETM and SET segments

Adjusted EPS for Q3 misses analyst expectations

Company plans Class A share repurchases in Q4, reflecting strategic confidence

Outlook

Company expects Q4 revenue to decline 12% to 14% year-over-year

Kelly projects Q4 adjusted EBITDA margin of approximately 3%

Company plans active Class A share repurchases in Q4

Result Drivers

EDUCATION SEGMENT GROWTH - Co reports 0.9% revenue growth in Education segment, partially offsetting declines in other areas

EXPENSE OPTIMIZATION - Adjusted SG&A expenses fell 9.7% due to structural and demand-driven initiatives

GOODWILL IMPAIRMENT - Co incurs $102 mln non-cash goodwill impairment charge, impacting operating income

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
$935 mln
Q3 Adjusted EPS
Miss
$0.18
$0.42 (4 Analysts)
Q3 EPS
-$4.26
Q3 Operating Income
-$102.10 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the employment services peer group is "buy"

Wall Street's median 12-month price target for Kelly Services Inc is $26.00, about 56.1% above its November 5 closing price of $11.41

The stock recently traded at 4 times the next 12-month earnings vs. a P/E of 5 three months ago

Press Release: ID:nGNX4mCCjj

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)