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ManpowerGroup Inc. (MAN - Analyst Report) is slated to report its second-quarter 2013 results on Jul 19, 2013. In the last quarter, it posted a positive surprise of 40%. Let’s see how things are shaping up for this announcement.

Growth Factors this Past Quarter

Effective cost management and tax credits earned in France facilitated ManpowerGroup to come up with better-than-expected first-quarter 2013 results. Manpower is now contemplating on exiting lower margin business and venturing into high margin business. The ManpowerGroup Solutions, the company’s high margin business, sustained its growth momentum during the quarter. Alongside, Manpower is focusing on abridging costs.

Earnings Whispers?

Our proven model does not conclusively show that Manpower is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP (Read: Zacks Earnings ESP: A Better Method) and a Zacks Rank #1, #2 or #3 for this to happen. This is not the case here as you will see below.

Zacks ESP: ESP for Manpower is 0.00%. This is because the Most Accurate Estimate stands at 89 cents, which is in line with the Zacks Consensus Estimate.

Zacks Rank #1 (Strong Buy): Manpower’s Zacks Rank #1 (Strong Buy) lowers the predictive power of ESP because the Zacks Rank #1 when combined with 0.00% ESP makes surprise prediction difficult. We caution against stocks with Zacks Ranks #4 and #5 (Sell rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.

Stocks that Warrant a Look

Here are some other companies you may want to consider as our model shows they have the right combination of elements to post an earnings beat this quarter:

Deckers Outdoor Corp. (DECK - Analyst Report), Earnings ESP of +13.21% and a Zacks Rank #2 (Buy).

The Gap, Inc. (GPS - Analyst Report), Earnings ESP of +1.70% and a Zacks Rank #2 (Buy).

Rent-A-Center, Inc. (RCII - Analyst Report), Earnings ESP of +1.33% and a Zacks Rank #3 (Hold).

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