Kelly Q2 revenue edges up on organic basis
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Second-quarter revenue rose 0.6% on an organic basis at Kelly Services (NASDAQ: KELYA, KELYB), which excludes the effects of the sale of its European staffing operations in January and its acquisition of Motion Recruitment Partners in May. The Troy, Michigan-headquartered staffing firm noted a stabilization in demand.
Including the impacts of the European staffing sale and the MRP purchase, revenue was down 13% year over year on a reported basis to USD 1.06 billion.
“In the second quarter, employers continued to take a cautious approach to hiring, though customer demand stabilized on a sequential basis across much of our business — a development that is reflected in Kelly’s organic revenue for the quarter,” President and CEO Peter Quigley said in a press release.
The company also sold the Ayers Group business during the quarter.
One of the fastest-growing areas in the second quarter was Kelly’s education staffing business, where revenue rose 21.7% to USD 251.1 million.
Kelly’s outsourcing and consulting operations, which include MSP and RPO, saw revenue rise by 3.2% in constant currency. Professional and industrial — which includes industrial staffing, contact center and office/clerical — fell 8.4% in constant currency. Science, engineering and technology revenue rose 10.2%.
US revenue increased 5.8% on a reported basis to USD 944.2 million.
Kelly also reported Canadian revenue was up 1.8% in constant currency. Puerto Rican revenue rose 1.6%, and revenue from Mexico fell 24.8% in constant currency.
Asia Pacific revenue rose 14.9% in constant currency to USD12.5 million.
Kelly Services - Q2 2024
(USD millions) | Q2 2024 | Q2 2023 | % change | % constant currency |
Revenue | 1,057.50 | 1,217.20 | -13.1% | -13.0% |
Gross profit | 213.7 | 240.6 | -11.2% | -11.1% |
Gross margin | 20.2% | 19.8% | - | - |
Net earnings | 4.6 | 7.5 | -35.0% | - |
Revenue by Segment
(USD millions) | Q2 2024 | Q2 2023 | % change | % constant currency |
Professional & industrial | 357.7 | 390.8 | -8.5% | -8.4% |
Science, engineering & technology | 332.2 | 301.4 | 10.2% | 10.2% |
Education | 251.1 | 206.4 | 21.7% | 21.7% |
Outsourcing & consulting | 117 | 113.7 | 2.9% | 3.2% |
International | - | 205.9 | - | - |
Revenue by Geography
(USD millions) | Q2 2024 | Q2 2023 | % change | % constant currency |
United States | 944.2 | 892.4 | 5.8% | 5.8% |
Canada | 46.4 | 46.4 | -0.1% | 1.8% |
Puerto Rico | 28.2 | 27.7 | 1.6% | 1.6% |
Mexico | 15.4 | 20 | -22.9% | -24.8% |
Total Americas Region | 1,034.20 | 986.5 | 4.8% | 4.9% |
Switzerland | 1 | 56 | -98.2% | -98.2% |
France | - | 50.2 | - | - |
Portugal | - | 49.3 | - | - |
Italy | - | 16.5 | - | - |
Other | 9.8 | 47.6 | -79.3% | -79.2% |
Total European Region | 10.8 | 219.6 | -95.1% | -79.2% |
Asia Pacific | 12.5 | 11.1 | 12.3% | 14.9% |
Guidance
Kelly forecast revenue to increase by 2.5% to 3.5% on an organic basis in the second half of the year.
Share Price
KELYA shares finished the day down 5.23% to USD 19.37. They were 14.96% above their 52-week low.