
Key events, in time order
Q2 revenue and EPS beat consensus estimates, though down from $0.54 a year ago
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Kelly Services is showing early signs of recovery, with management indicating a move beyond stabilization. This potential turnaround is seen as a catalyst for stock appreciation before the market fully prices it in.
Main discussion
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Facts and opinions separated · All items sourced · Not investment advice
Kelly Services is a staffing agency that supplies temporary and permanent workers to companies, schools, and labs across the US, Europe, and Mexico.
Revenue is USD 4.25B, but the company loses money: net income is -USD 0.25B and net margin is -5.98%. Gross margin is 20.07%, yet operating costs turn it negative.
Competitors like Adecco, ManpowerGroup, and Randstad can easily match Kelly's services, and clients often switch based on price. No proprietary tech or network lock-in, so moat is weak.