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ManpowerGroup (MAN) Loses 2.2% Despite Beating on Q3 Earnings
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ManpowerGroup Inc. (MAN - Free Report) reported mixed third-quarter 2021 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same.
The stock declined 2.2% since the earnings release on Oct 19, as the company‘s earnings guidance for the third quarter was weak. It expects earnings per share in the range of $1.99-$2.07, the midpoint ($2.03) of which is below the current Zacks Consensus Estimate of $2.07 per share.
Quarterly adjusted earnings of $1.93 per share beat the consensus mark by 1.6% and improved 60.8% year over year. The bottom line benefited from improvement in business mix and permanent recruitment activity.
Revenues of $5.14 billion lagged the consensus mark by 2.9% but inched up 12% year over year on a reported basis and 11% on a constant-currency (cc) basis. Experis and Talent Solutions reported double digit revenue growth surpassing pre-pandemic levels.
ManpowerGroup completed the acquisition of ettain group on Oct 1. The buyout is expected to strengthen Experis’ global IT business, especially in serving Financial Services, Healthcare and Government clients. The combined entity is expected to have total annual revenues of more than $4.5 billion globally and more than $1.7 billion in North America.
Over the past year, ManpowerGroup stock has gained 37.8%, underperforming the 68.9% growth of the industry it belongs to.
ManpowerGroup Inc. Price, Consensus and EPS Surprise
Revenues from America totaled $997.6 million, up 7.4% year over year on a reported basis and 7.7% at cc. In the United States, revenues came in at $644.9 million, up 11.4% year over year. In the Other Americas subgroup, revenues of $352.7 million grew marginally on a reported basis and 1.7% at cc.
Revenues from Southern Europe were up 12.8% on a reported basis and 11.7% at cc to $2.38 billion. Revenues from France came in at $1.32 billion, up 9.3% on a reported basis and 8.3% at cc. Revenues from Italy amounted to $456.4 million, up 30% on a reported basis and 28.8% at cc. The Other Southern Europe sub segment generated revenues of $609.2 million, up 9.6% on a reported basis and 8.1% at cc.
Northern Europe revenues moved up 23.1% on a reported basis and 19.2% at cc to $1.17 billion. APME revenues totaled $611.2 million, up 2.6% on a reported basis and 4% at cc.
Operating Performance
The company incurred adjusted operating profit of $162 million, up from $117 million from the year-ago quarter. Adjusted operating profit margin of 3.2% increased 60 basis points year over year.
Balance Sheet and Cash Flow
ManpowerGroup exited the quarter with cash and cash equivalents balance of $1.61 billion compared with the prior quarter’s level of $1.46 billion. Long-term debt at the end of the quarter was $582.6 million compared with $1.07 billion reported in the preceding quarter.
The company generated $187.5 million of cash from operating activities, while Capex was $15.1 million in the quarter.
ManpowerGroup currently carries a Zacks Rank #3 (Hold).
Recent Performance of Some Other Business Services Companies
Equifax (EFX - Free Report) reported better-than-expected third-quarter 2021 results. Adjusted earnings of $1.85 per share beat the Zacks Consensus Estimate by 7.6% but declined 1.1% on a year-over-year basis. Revenues of $1.22 billion outpaced the consensus estimate by 3.6% and improved 14.5% year over year.
IQVIA Holdings (IQV - Free Report) reported impressive third-quarter 2021 results with earnings per share of $2.17 beating the consensus mark by 1.9% and improving 33.1% on a year-over-year basis. Total revenues of $3.39 billion outpaced the consensus estimate by 1% and increased 21.7% year over year.
Omnicom (OMC - Free Report) reported third-quarter 2021 adjusted earnings of $1.65 per share that beat the consensus mark by 20.4% and increased 36.4% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 0.6% and increased 7.1% year over year.
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ManpowerGroup (MAN) Loses 2.2% Despite Beating on Q3 Earnings
ManpowerGroup Inc. (MAN - Free Report) reported mixed third-quarter 2021 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same.
The stock declined 2.2% since the earnings release on Oct 19, as the company‘s earnings guidance for the third quarter was weak. It expects earnings per share in the range of $1.99-$2.07, the midpoint ($2.03) of which is below the current Zacks Consensus Estimate of $2.07 per share.
Quarterly adjusted earnings of $1.93 per share beat the consensus mark by 1.6% and improved 60.8% year over year. The bottom line benefited from improvement in business mix and permanent recruitment activity.
Revenues of $5.14 billion lagged the consensus mark by 2.9% but inched up 12% year over year on a reported basis and 11% on a constant-currency (cc) basis. Experis and Talent Solutions reported double digit revenue growth surpassing pre-pandemic levels.
ManpowerGroup completed the acquisition of ettain group on Oct 1. The buyout is expected to strengthen Experis’ global IT business, especially in serving Financial Services, Healthcare and Government clients. The combined entity is expected to have total annual revenues of more than $4.5 billion globally and more than $1.7 billion in North America.
Over the past year, ManpowerGroup stock has gained 37.8%, underperforming the 68.9% growth of the industry it belongs to.
ManpowerGroup Inc. Price, Consensus and EPS Surprise
ManpowerGroup Inc. price-consensus-eps-surprise-chart | ManpowerGroup Inc. Quote
Segmental Revenues
Revenues from America totaled $997.6 million, up 7.4% year over year on a reported basis and 7.7% at cc. In the United States, revenues came in at $644.9 million, up 11.4% year over year. In the Other Americas subgroup, revenues of $352.7 million grew marginally on a reported basis and 1.7% at cc.
Revenues from Southern Europe were up 12.8% on a reported basis and 11.7% at cc to $2.38 billion. Revenues from France came in at $1.32 billion, up 9.3% on a reported basis and 8.3% at cc. Revenues from Italy amounted to $456.4 million, up 30% on a reported basis and 28.8% at cc. The Other Southern Europe sub segment generated revenues of $609.2 million, up 9.6% on a reported basis and 8.1% at cc.
Northern Europe revenues moved up 23.1% on a reported basis and 19.2% at cc to $1.17 billion. APME revenues totaled $611.2 million, up 2.6% on a reported basis and 4% at cc.
Operating Performance
The company incurred adjusted operating profit of $162 million, up from $117 million from the year-ago quarter. Adjusted operating profit margin of 3.2% increased 60 basis points year over year.
Balance Sheet and Cash Flow
ManpowerGroup exited the quarter with cash and cash equivalents balance of $1.61 billion compared with the prior quarter’s level of $1.46 billion. Long-term debt at the end of the quarter was $582.6 million compared with $1.07 billion reported in the preceding quarter.
The company generated $187.5 million of cash from operating activities, while Capex was $15.1 million in the quarter.
ManpowerGroup currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Recent Performance of Some Other Business Services Companies
Equifax (EFX - Free Report) reported better-than-expected third-quarter 2021 results. Adjusted earnings of $1.85 per share beat the Zacks Consensus Estimate by 7.6% but declined 1.1% on a year-over-year basis. Revenues of $1.22 billion outpaced the consensus estimate by 3.6% and improved 14.5% year over year.
IQVIA Holdings (IQV - Free Report) reported impressive third-quarter 2021 results with earnings per share of $2.17 beating the consensus mark by 1.9% and improving 33.1% on a year-over-year basis. Total revenues of $3.39 billion outpaced the consensus estimate by 1% and increased 21.7% year over year.
Omnicom (OMC - Free Report) reported third-quarter 2021 adjusted earnings of $1.65 per share that beat the consensus mark by 20.4% and increased 36.4% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 0.6% and increased 7.1% year over year.