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ManpowerGroup's (MAN) Q1 Earnings: How Things Are Shaping Up

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ManpowerGroup Inc. (MAN - Free Report) is scheduled to report first-quarter 2019 results on Apr 18, before the bell. Shares of the company have gained 32.2% year to date, significantly outperforming the 21.3% rally of the industry it belongs to.

What Happened Last Quarter?

Adjusted earnings per share came in at $2.44, which beat the consensus mark by 24 cents and rose 15.1% on a year-over-year basis. Revenues of $5.4 billion lagged the consensus mark by $152 million and declined 4.3% year over year, mainly due to weakness across the company’s European businesses.

What to Expect This Time?

The Zacks Consensus Estimate for revenues in the to-be-reported quarter is pegged at $4.9 billion, indicating year-over-year decrease of 10.9%. A challenging market environment in Europe, especially in France, Italy and Germany, is expected to continue weighing on the company’s top line.

ManpowerGroup Inc. Revenue (TTM)

 

 

The Zacks Consensus Estimate for earnings stand at $1.35 per share, indicating year-over-year decrease of 21.5%. The company is likely to continue to experience staffing margin pressure, resulting from loss of competitiveness and employment (CICE) subsidy in France. The consensus estimate for earnings lies within the company guided range of $1.30-$1.38. The guidance includes a negative impact of 13 cents from foreign currency.

What Our Model Says

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. The Sell-rated stocks (Zacks Rank #4 or 5) are best avoided, especially if they have a negative Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

ManpowerGroup has an Earnings ESP of 0.00% and a Zacks Rank #3, a combination that makes surprise prediction difficult.

Stocks That Warrant a Look

Here are some stocks that you may want to consider, as our model shows that these have the right combination of elements to deliver a positive earnings surprise:

Automatic Data Processing (ADP - Free Report) , with an Earnings ESP of +1.42% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Delphi Technologies , with an Earnings ESP of +1.38% and a Zacks Rank #3.

S&P Global (SPGI - Free Report) , with an Earnings ESP of +0.79% and a Zacks Rank #3.

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