Overview

* Kelly Services ( KELYA ) 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/Mis Actual Consensu

s s

Estimate

Q2 $1.10

Revenue bln

Q2 Miss $0.54 $0.55 (4

Adjusted Analysts

EPS )

Q2 EPS $0.52

Q2 $22.20

Operatin mln

g Income

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 ( KELYA ) 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:

(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.)