KELYA - Kelly Services (KELYA) - A Productive Start to the Year

1Q22. Revenue of $1.296 billion was up 7.5% year-over-year (9% in constant currency). Consensus was $1.26 billion and we were also at $1.26 billion. Kelly reported operating earnings of $23.4 million, compared to $10.6 million a year ago. We were at $11.0 million. GAAP loss per share was $1.23 compared to GAAP net income of $0.64/sh. Adjusted EPS for the first quarter was $0.46 versus $0.12 last year. We had projected adjusted EPS of $0.23.GP Rate Continues to Improve. Management has done a masterful job of increasing gross profit rate over the years, even in the face of the recent economic hardships, including COVID. GP rate for the quarter was 19.9%, up 220 basis points y-o-y. The improvement has come from a combination of steps to improve organic GP and the addition of higher margin specialty business through recent acquisitions. We believe GP rate can continue to increase. Read More >>