Kelly Services (NASDAQ:KELYA) Hits New 52-Week Low on Disappointing Earnings

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

The business services provider reported $0.21 EPS for the quarter, missing analysts’ consensus estimates of $0.44 by ($0.23). The company had revenue of $1.04 billion for 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%. Kelly Services’s revenue was down 7.1% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.50 EPS.

Kelly Services Dividend Announcement

The company 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. This represents a $0.30 dividend on an annualized basis and a dividend yield of 1.74%. The ex-dividend date of this dividend is Wednesday, November 20th. Kelly Services’s dividend payout ratio is presently 22.90%.

Analyst Upgrades and Downgrades

KELYA has been the topic of a number of research analyst reports. Barrington Research reaffirmed an “outperform” rating and set a $29.00 target price 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 report on Friday, August 9th.

Hedge Funds Weigh In On Kelly Services

Hedge funds and other institutional investors have recently modified their holdings of the stock. Northwestern Mutual Wealth Management Co. acquired a new position in shares of Kelly Services in the second quarter worth $30,000. Innealta Capital LLC acquired a new position in shares of Kelly Services during the second quarter worth approximately $39,000. nVerses Capital LLC acquired a new stake in shares of Kelly Services in the second quarter worth $47,000. Meeder Asset Management Inc. acquired a new stake in shares of Kelly Services in the second quarter worth $51,000. Finally, SG Americas Securities LLC bought a new position in Kelly Services during the first quarter worth $125,000. Institutional investors and hedge funds own 76.34% of the company’s stock.

Kelly Services Trading Down 5.2 %

The company has a debt-to-equity ratio of 0.16, a quick ratio of 1.61 and a current ratio of 1.61. The company’s 50 day moving average is $20.55 and its 200 day moving average is $21.40. The stock has a market capitalization of $611.80 million, a price-to-earnings ratio of 13.85, a PEG ratio of 0.63 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.