Kelly Services stock tumbles as profit and revenue miss mark amid ‘tight’ labor conditions

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Shares of Kelly Services Inc. KELYA, -9.49% tumbled 9.5% in afternoon trading Wednesday, after the staffing services company reported third-quarter profit and revenue that rose less than forecast, and lowered its full-year outlook, amid a historically tight labor market. Net income more than doubled to $34.8 million, or 87 cents a share, from $16.7 million, or 42 cents a share, in the year-ago period. Excluding nonrecurring items, such as gain from an investment in Persol Holdings, adjusted earnings per share fell to 25 cents from 29 cents, to miss the FactSet consensus of 26 cents. Revenue rose 15.1% to $1.195 billion, below the FactSet consensus of $1.245 billion. The company cut its 2021 revenue growth guidance range to 9.5% to 10.5% from 11% to 12%. The company had similar issues in the third quarter of pre-pandemic 2019, as earnings missed expectations as “record low” unemployment hindered results. The stock has plunged 20.6% over the past three months, while the S&P 500 SPX, -0.93% has gained 4.8%.

This article was originally published by Marketwatch.com. Read the original article here.

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