Third-quarter revenue rose 14.5% in constant currency at Kelly (NASDAQ: KELYA, KELYB). The Troy, Michigan-based staffing giant cited improved year-over-year demand. In addition, the third quarter includes results from Kelly’s acquisition of Softworld Inc. in April.
US revenue rose 15.0%.
“We’re pleased that all five of our specialty operating segments delivered organic year-over-year gains in the third quarter, contributing to solid revenue and GP dollar growth for the company,” President and CEO Peter Quigley said. “Demand for our solutions is strong, and we’re finding innovative ways to connect talent and clients in a tight labor market.”
| (US$ millions) | Q3 2021 | Q3 2020 | % change | % constant currency |
| Revenue | $1,195.4 | $1,038.2 | 15.1% | 14.5% |
| Gross profit | $228.9 | $191.0 | 19.8% | 19.2% |
| Gross margin | 19.2% | 18.4% | ||
| Net earnings | $34.8 | $16.7 | 108.9% |
Permanent placement fees increased as customers ramped up permanent hiring and the fourth-quarter 2020 acquisition of Greenwood/Asher & Associates.
Revenue by segment
| (US$ millions) | Q3 2021 | Q3 2020 | % change | % constant currency |
| Professional & industrial | $452.6 | $446.5 | 1.4% | 1.0% |
| Science, engineering and technology | $306.2 | $244.0 | 25.5% | 25.3% |
| Education | $66.6 | $27.5 | 142.1% | 142.1% |
| Outsourcing & consulting | $113.4 | $87.9 | 29.1% | 28.6% |
| International | $256.8 | $232.4 | 10.5% | 8.8% |
Kelly’s third-quarter revenue rose across most geographies with the exceptions of Mexico and the UK. Mexico’s government recently enacted a law banning traditional staffing. Kelly also reported a $9.5 million charge related to a customer dispute in Mexico.
Revenue by geography
| (US$ millions) | Q3 2021 | Q3 2020 | % change | % constant currency |
| Americas | ||||
| United States | $851.7 | $740.6 | 15.0% | 15.0% |
| Canada | $43.3 | $30.3 | 42.8% | 35.1% |
| Mexico | $14.4 | $27.4 | -47.4% | -52.7% |
| Puerto Rico | $25.5 | $18.4 | 39.2% | 39.2% |
| Brazil | – | $1.8 | nm | nm |
| Europe | ||||
| France | $56.3 | $48.8 | 15.4% | 14.3% |
| Switzerland | $54.5 | $49.6 | 10.0% | 9.8% |
| Portugal | $36.6 | $31.7 | 15.6% | 14.6% |
| Russia | $33.0 | $27.2 | 21.3% | 21.1% |
| Italy | $18.5 | $14.5 | 27.5% | 26.4% |
| UK | $17.2 | $16.4 | 4.5% | -2.1% |
| Germany | $9.0 | $7.0 | 28.2% | 27.3% |
| Ireland | $7.4 | $4.9 | 49.9% | 48.8% |
| Other Europe | $17.3 | $12.0 | 44.4% | 43.0% |
| Asia Pacific | ||||
| Total APAC | $10.7 | $7.6 | 41.4% | 39.3% |
Guidance
Kelly forecast full-year 2021 revenue to be up between 9.5% and 10.5%.
Gross profit is expected to be 18.5%.
Share price and market cap
KELYA shares were down 9.47% to $18.65 as of 1:05 p.m. Eastern time; they set a new 52-week low during trading so far today when they reached $17.87, according to FT.com. The company had a market cap of $813.26 million.