Kelly Services (NASDAQ:KELYA) Sets New 1-Year Low Following Weak Earnings

Kelly Services, Inc. (NASDAQ:KELYA)’s share price hit a new 52-week low during mid-day trading on Friday following a weaker than expected earnings announcement. The company traded as low as $17.18 and last traded at $17.20, with a volume of 40165 shares. The stock had previously closed at $18.14.

The business services provider reported $0.21 earnings per share for the quarter, missing analysts’ consensus estimates of $0.44 by ($0.23). The firm had revenue of $1.04 billion during the quarter, compared to analyst estimates of $1.07 billion. Kelly Services had a net margin of 1.09% and a return on equity of 7.82%. The business’s revenue was down 7.1% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.50 earnings per share.

Kelly Services Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, December 4th. Stockholders of record on Wednesday, November 20th will be given a dividend of $0.075 per share. The ex-dividend date is Wednesday, November 20th. This represents a $0.30 dividend on an annualized basis and a dividend yield of 1.82%. Kelly Services’s dividend payout ratio is 22.90%.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on KELYA. Barrington Research reiterated an “outperform” rating and set a $29.00 price objective on shares of Kelly Services in a report on Friday, September 27th. StockNews.com lowered shares of Kelly Services from a “buy” rating to a “hold” rating in a research note on Friday, August 9th.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of KELYA. BNP Paribas Financial Markets lifted its position in shares of Kelly Services by 38.9% in the first quarter. BNP Paribas Financial Markets now owns 22,576 shares of the business services provider’s stock worth $565,000 after purchasing an additional 6,325 shares in the last quarter. Janney Montgomery Scott LLC boosted its stake in shares of Kelly Services by 11.2% during the 1st quarter. Janney Montgomery Scott LLC now owns 23,939 shares of the business services provider’s stock worth $599,000 after buying an additional 2,405 shares during the last quarter. LSV Asset Management boosted its stake in shares of Kelly Services by 3.4% during the 1st quarter. LSV Asset Management now owns 585,429 shares of the business services provider’s stock worth $14,659,000 after buying an additional 19,100 shares during the last quarter. Empowered Funds LLC grew its holdings in shares of Kelly Services by 8.2% in the 1st quarter. Empowered Funds LLC now owns 173,047 shares of the business services provider’s stock valued at $4,333,000 after acquiring an additional 13,092 shares in the last quarter. Finally, SG Americas Securities LLC acquired a new stake in shares of Kelly Services in the first quarter valued at about $125,000. 76.34% of the stock is owned by institutional investors and hedge funds.

Kelly Services Stock Down 8.9 %

The company has a quick ratio of 1.61, a current ratio of 1.61 and a debt-to-equity ratio of 0.16. The firm has a fifty day moving average of $20.46 and a 200-day moving average of $21.37. The firm has a market cap of $587.62 million, a P/E ratio of 12.61, a price-to-earnings-growth ratio of 0.69 and a beta of 1.20.

Kelly Services Company Profile

Kelly Services, Inc, together with its subsidiaries, provides workforce solutions to various industries. The company operates through five segments: Professional & Industrial; Science, Engineering & Technology; Education; Outsourcing & Consulting; and International. The Professional & Industrial segment delivers staffing, outcome-based, and permanent placement services providing administrative, accounting, and finance; light industrial; contact center staffing; and other workforce solutions.