We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
ManpowerGroup (MAN - Free Report) is still seeing a strong global job market but negative currency exchange is hitting its earnings. Analysts have cut earnings estimates on this Zacks Rank #5 (Strong Sell).
ManpowerGroup is a global workforce solutions company. It has 3 different brands: Manpower, Experis and Talent Solutions. It operates in 75 countries and territories.
A Beat in the Second Quarter
On July 19, 2022, ManpowerGroup reported its second quarter results and beat the Zacks Consensus by $0.02. Earnings were $2.33 versus the consensus of $2.31.
Revenues fell 4% to $5.1 billion but were up 6% in constant currency.
It saw continued strong performance of its higher margin brands, including Experis and Talent Solutions. Manpower saw some supply chain disruptions in certain European markets which hit performance in that brand.
ManpowerGroup Guides Under Consensus on Q3
The strong dollar is hitting. ManpowerGroup gave third quarter guidance below the Zacks Consensus, in the range of $2.19 to $2.27.
That includes an unfavorable currency impact of $0.29. The Zacks Consensus for Q3 had been looking for $2.28.
But ManpowerGroup isn't bearish on the upcoming quarter.
"As we start the third quarter, labor markets remain very solid and demand for talent is strong. We continue to monitor those sectors in Europe where present-day supply-chain disruptions are impacting our business, particularly in the automotive industry," said Jonas Prising, CEO.
"At the same time, we also believe the persistent level of talent shortage represents a significant opportunity for our business," he added.
As a result of the lower guide, analysts have lowered both Q3 and full year estimates.
The 2022 Zacks Consensus has fallen to $8.83 from $8.97 prior to the earnings release. But that's still earnings growth of 22% as ManpowerGroup made just $7.24 last year.
Image Source: Zacks Investment Research
Shares Sink in 2022
With fears of a recession climbing, it's not surprising that shares of ManpowerGroup have fallen 18.6% year-to-date.
Who wants to own a staffing company as the economy slows?
Shares are cheap, however, with a forward P/E of just 8.9. But it could be a value trap if earnings estimates are cut further.
Investors do get a dividend, yielding 3.4%, for their troubles.
But investors may want to wait on the sidelines and keep ManpowerGroup on a watch list until there is more certainty in the global economy.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Bear of the Day: ManpowerGroup (MAN)
ManpowerGroup (MAN - Free Report) is still seeing a strong global job market but negative currency exchange is hitting its earnings. Analysts have cut earnings estimates on this Zacks Rank #5 (Strong Sell).
ManpowerGroup is a global workforce solutions company. It has 3 different brands: Manpower, Experis and Talent Solutions. It operates in 75 countries and territories.
A Beat in the Second Quarter
On July 19, 2022, ManpowerGroup reported its second quarter results and beat the Zacks Consensus by $0.02. Earnings were $2.33 versus the consensus of $2.31.
Revenues fell 4% to $5.1 billion but were up 6% in constant currency.
It saw continued strong performance of its higher margin brands, including Experis and Talent Solutions. Manpower saw some supply chain disruptions in certain European markets which hit performance in that brand.
ManpowerGroup Guides Under Consensus on Q3
The strong dollar is hitting. ManpowerGroup gave third quarter guidance below the Zacks Consensus, in the range of $2.19 to $2.27.
That includes an unfavorable currency impact of $0.29. The Zacks Consensus for Q3 had been looking for $2.28.
But ManpowerGroup isn't bearish on the upcoming quarter.
"As we start the third quarter, labor markets remain very solid and demand for talent is strong. We continue to monitor those sectors in Europe where present-day supply-chain disruptions are impacting our business, particularly in the automotive industry," said Jonas Prising, CEO.
"At the same time, we also believe the persistent level of talent shortage represents a significant opportunity for our business," he added.
As a result of the lower guide, analysts have lowered both Q3 and full year estimates.
The 2022 Zacks Consensus has fallen to $8.83 from $8.97 prior to the earnings release. But that's still earnings growth of 22% as ManpowerGroup made just $7.24 last year.
Image Source: Zacks Investment Research
Shares Sink in 2022
With fears of a recession climbing, it's not surprising that shares of ManpowerGroup have fallen 18.6% year-to-date.
Who wants to own a staffing company as the economy slows?
Shares are cheap, however, with a forward P/E of just 8.9. But it could be a value trap if earnings estimates are cut further.
Investors do get a dividend, yielding 3.4%, for their troubles.
But investors may want to wait on the sidelines and keep ManpowerGroup on a watch list until there is more certainty in the global economy.