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

Kelly Services, Inc. (NASDAQ:KELYA)’s stock price reached a new 52-week low during 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 traded. The stock had previously closed at $18.14.

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

Kelly Services Announces Dividend

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

Wall Street Analyst Weigh In

Several equities analysts have commented on the company. StockNews.com cut Kelly Services from a “buy” rating to a “hold” rating in a report on Friday, August 9th. Barrington Research restated an “outperform” rating and issued a $29.00 target price on shares of Kelly Services in a research note on Friday, September 27th.

Hedge Funds Weigh In On Kelly Services

A number of large investors have recently modified their holdings of the stock. Northwestern Mutual Wealth Management Co. bought a new position in Kelly Services in the second quarter valued at about $30,000. Innealta Capital LLC bought a new position in shares of Kelly Services in the 2nd quarter valued at about $39,000. nVerses Capital LLC acquired a new stake in shares of Kelly Services during the 2nd quarter worth approximately $47,000. Meeder Asset Management Inc. bought a new stake in shares of Kelly Services during the second quarter worth approximately $51,000. Finally, SG Americas Securities LLC acquired a new position in Kelly Services in the first quarter valued at approximately $125,000. 76.34% of the stock is currently owned by institutional investors and hedge funds.

Kelly Services Stock Down 8.9 %

The business’s fifty day simple moving average is $20.46 and its 200 day simple moving average is $21.37. The stock has a market cap of $587.62 million, a price-to-earnings ratio of 12.61, a price-to-earnings-growth ratio of 0.69 and a beta of 1.20. The company has a current ratio of 1.61, a quick ratio of 1.61 and a debt-to-equity ratio of 0.16.

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.