Recruiter Kelly Services Q2 adjusted EPS misses estimates

Kelly Services

07/08/2025 12:46

Overview

Kelly Services Q2 revenue rises 4.2% yr/yr to $1.1 bln, organic rev down 3.3%

Adjusted EPS for Q2 misses analyst expectations, per LSEG data

Company expects Q3 revenue decline of 5% to 7%, driven by reduced demand

Outlook

Company expects Q3 revenue decline of 5% to 7%

Kelly anticipates Q3 adjusted EBITDA margin expansion of 80 to 90 bps

Company sees modest full-year margin improvement

Result Drivers

ACQUISITIONS - Revenue growth driven by acquisition of Motion Recruitment Partners, LLC

EDUCATION SEGMENT - 5.6% revenue growth in Education segment, per CEO Peter Quigley

FEDERAL CONTRACTORS - 1.4% revenue decline due to reduced demand for U.S. federal government contractors

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
$1.10 bln
Q2 Adjusted EPS
Miss
$0.54
$0.55 (4 Analysts)
Q2 EPS
$0.52
Q2 Operating Income
$22.20 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 $27.00, about 54.6% above its August 6 closing price of $12.25

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

Press Release: ID:nGNX4g8nmT

(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.)