Kelly Q3 2024 revenue down 7.1% amid European exit
MICHIGAN, UNITED STATES — Kelly, a global leader in specialty talent solutions, reported a 7.1% year-over-year decline in third-quarter revenue, totaling US$1.04 billion. The drop was primarily due to the sale of its European staffing operations in early January 2024.
However, revenue remained stable on an organic basis, falling only 0.2%, reflecting a stabilization in the company’s core business.
The May acquisition of Motion Recruitment Partners (MRP) also contributed positively to the quarter’s results, adding 11.2% to reported revenue growth.
Earnings impacted by restructuring and acquisition costs
Kelly’s operating earnings for Q3 2024 were US$2.6 million, a significant improvement from US$100,000 in the same quarter last year.
Adjusted earnings fell by 24.5% to US$11.7 million from US$15.5 million in Q3 2023, largely due to costs associated with integrating MRP and the sale of European operations.
Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) margin rose slightly to 2.5%, up from 2.3% in the prior year’s quarter. Despite the challenges, Kelly CEO Peter Quigley emphasized the company’s focus on stabilizing organic revenue and its ongoing transformation efforts.
“We remained focused on what we can control as uncertain macroeconomic market conditions persisted,” Quigley noted. “We expect to build on our momentum as we close the year.”
EPS drops due to one-time charges
Earnings per share (EPS) for Q3 2024 stood at US$0.02, down from US$0.18 in Q3 2023. After adjusting for one-time charges related to MRP integration and restructuring efforts, adjusted EPS was US$0.21 compared to US$0.50 last year.
Kelly expects continued EBITDA margin expansion in Q4 2024 as it benefits from its recent acquisition and ongoing restructuring initiatives.
Dividend declared
Kelly’s board of directors declared a dividend of US$0.075 per share, payable on December 4, 2024, to shareholders of record as of November 20, 2024.
Outlook for Q4
Looking ahead, Kelly anticipates further margin improvements driven by its strategic actions and acquisitions like MRP.
The company remains optimistic about capitalizing on future staffing demand rebounds while maintaining above-market performance through ongoing efficiency initiatives.
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