Overview

* Kelly Q3 revenue down 9.9% yr/yr, impacted by reduced demand in ETM and SET segments

* Adjusted EPS for Q3 misses analyst expectations

* Company plans Class A share repurchases in Q4, reflecting strategic confidence

Outlook

* Company expects Q4 revenue to decline 12% to 14% year-over-year

* Kelly projects Q4 adjusted EBITDA margin of approximately 3%

* Company plans active Class A share repurchases in Q4

Result Drivers

* EDUCATION SEGMENT GROWTH - Co reports 0.9% revenue growth in Education segment, partially offsetting declines in other areas

* EXPENSE OPTIMIZATION - Adjusted SG&A expenses fell 9.7% due to structural and demand-driven initiatives

* GOODWILL IMPAIRMENT - Co incurs $102 mln non-cash goodwill impairment charge, impacting operating income

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 $935 mln

Revenue

Q3 Miss $0.18 $0.42 (4

Adjusted Analysts

EPS )

Q3 EPS -$4.26

Q3 -$102.10

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 $26.00, about 56.1% above its November 5 closing price of $11.41

* The stock recently traded at 4 times the next 12-month earnings vs. a P/E of 5 three months ago

Press Release:

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(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.)