Kelly Services (NASDAQ:KELYA) Posts Earnings Results, Misses Expectations By $0.29 EPS

Kelly Services (NASDAQ:KELYA) announced its earnings results on Thursday. The business services provider reported $0.16 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.45 by ($0.29), Zacks reports. Kelly Services had a negative net margin of 5.98% and a positive return on equity of 4.05%. The firm had revenue of $1.05 billion during the quarter, compared to analysts’ expectations of $1.03 billion.

Kelly Services Stock Up 0.1%

KELYA stock opened at $9.79 on Friday. The company has a market capitalization of $345.97 million, a P/E ratio of -1.35, a PEG ratio of 0.43 and a beta of 0.79. The company has a current ratio of 1.54, a quick ratio of 1.59 and a debt-to-equity ratio of 0.10. Kelly Services has a twelve month low of $7.98 and a twelve month high of $14.94. The firm has a 50 day simple moving average of $9.55 and a 200-day simple moving average of $11.21.

Kelly Services Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, March 11th. Stockholders of record on Wednesday, February 25th will be given a dividend of $0.075 per share. The ex-dividend date of this dividend is Wednesday, February 25th. This represents a $0.30 dividend on an annualized basis and a dividend yield of 3.1%. Kelly Services’s dividend payout ratio (DPR) is presently -4.13%.

Analysts Set New Price Targets

A number of brokerages have issued reports on KELYA. Barrington Research cut their price target on shares of Kelly Services from $16.00 to $15.00 and set an “outperform” rating on the stock in a research note on Friday. Weiss Ratings restated a “sell (d)” rating on shares of Kelly Services in a report on Thursday, January 22nd. Wall Street Zen lowered shares of Kelly Services from a “hold” rating to a “sell” rating in a report on Saturday. Finally, Zacks Research upgraded shares of Kelly Services from a “strong sell” rating to a “hold” rating in a research note on Monday, January 12th. Two equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, Kelly Services currently has an average rating of “Hold” and an average price target of $15.00.

Kelly Services News Roundup

Here are the key news stories impacting Kelly Services this week:

• Positive Sentiment: Company declared a quarterly cash dividend of $0.075 per share (record Feb 25; payable Mar 11), implying a ~3.1% yield — provides income support and can reduce downside for yield-seeking investors.
• Positive Sentiment: Barrington Research maintained an “outperform” rating and set a $15 price target (lowered from $16), signaling analyst conviction and ~50%+ upside from current levels — a potential positive catalyst if investors follow the buy recommendation. Article Title
• Neutral Sentiment: Press release and formal Q4 results are available; revenue of $1.05B slightly exceeded consensus ($1.03B), showing top-line resilience even as profitability weakened. Article Title
• Neutral Sentiment: Full Q4 earnings call transcript is available for additional color on margins, staffing demand and cost actions — useful for investors wanting management’s detail on outlook and margin drivers. Article Title
• Neutral Sentiment: Reports show a strange/insignificant short-interest data point (zeros/NaNs); nothing actionable from short-interest filings at this time.
• Negative Sentiment: Q4 EPS of $0.16 missed consensus of $0.45 and fell sharply from prior-year EPS — the earnings miss is the primary near-term negative catalyst, highlighting pressure on margins and earnings quality. Article Title
• Negative Sentiment: Management updated 1Q FY2026 guidance below street expectations (revenue guidance came in under consensus), which increases downside risk until management demonstrates margin recovery or clearer topline momentum.

Institutional Investors Weigh In On Kelly Services

A number of hedge funds and other institutional investors have recently made changes to their positions in the company. Vanguard Group Inc. increased its holdings in Kelly Services by 7.9% in the third quarter. Vanguard Group Inc. now owns 2,071,363 shares of the business services provider’s stock worth $27,176,000 after buying an additional 151,655 shares during the last quarter. Boston Partners grew its position in Kelly Services by 0.4% in the third quarter. Boston Partners now owns 2,051,499 shares of the business services provider’s stock worth $26,908,000 after acquiring an additional 9,020 shares in the last quarter. Charles Schwab Investment Management Inc. increased its stake in shares of Kelly Services by 39.9% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 1,908,900 shares of the business services provider’s stock worth $16,798,000 after purchasing an additional 544,309 shares during the last quarter. Private Management Group Inc. raised its holdings in shares of Kelly Services by 101.8% during the 4th quarter. Private Management Group Inc. now owns 1,268,649 shares of the business services provider’s stock valued at $11,164,000 after purchasing an additional 640,076 shares in the last quarter. Finally, Millennium Management LLC boosted its holdings in Kelly Services by 8.5% in the first quarter. Millennium Management LLC now owns 1,188,264 shares of the business services provider’s stock worth $15,649,000 after purchasing an additional 93,026 shares in the last quarter. 76.34% of the stock is owned by hedge funds and other institutional investors.

About Kelly Services

Kelly Services, Inc is a global workforce solutions provider specializing in talent acquisition and staffing services across a wide range of industries. The company offers temporary staffing, permanent placement, outsourcing solutions, and consulting services to help organizations address their workforce needs. Its service offerings are designed to support clients in areas such as administrative support, information technology, engineering, science, education, healthcare, and industrial sectors.

Founded in 1946 by William Russell Kelly, Kelly Services has grown from a small local staffing firm into an international organization.