Kelly Services Q3 revenue falls on education demand weakness
Kelly Services’ third-quarter revenue fell 0.8% year over year to $927.2 million, while underlying revenue rose 2.3%. The company expects fourth-quarter revenue to be flat to up 1% and adjusted EBITDA margin of 3.8% to 4.0%.
1. Quarterly results
Kelly Services reported third-quarter revenue of $927.2 million, down 0.8% year over year, while underlying revenue increased 2.3%. Adjusted EPS was $0.07 and adjusted operating income was $6.1 million; the company also reported a loss per share of $0.05.
2. Demand and outlook
Improved demand and new business in its ETM segment helped drive underlying revenue growth. Lower demand from U.S. federal government contractors and three large ETM customers weighed on reported revenue, while reduced student enrollment hurt demand in the Education segment. Kelly expects fourth-quarter revenue to be flat to up 1% year over year and adjusted EBITDA margin of 3.8% to 4.0%.
3. Share repurchase
The company renewed and extended its $50 million share repurchase program.
