Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

We expect ManpowerGroup (MAN - Analyst Report), the global leader in the employment services industry, to beat expectations when it reports fourth-quarter 2012 results on Jan 30, 2013.

Why a Likely Positive Surprise?

Our proven model shows that Manpower is likely to beat earnings because it has the right combination of two key components.  

Positive Zacks ESP: ManpowerGroup currently has an Earnings ESP (Read: Zacks Earnings ESP: A Better Method) of +1.30%. This is because the Most Accurate estimate stands at 78 cents, while the Zacks Consensus Estimate is pegged at 77 cents.

Zacks Rank #2 (Buy): Note that stocks with Zacks Ranks of #1, #2 and #3 have a significantly higher chance of beating earnings estimates. The sell-rated stocks (Zacks Rank #4 and #5) should never be considered going into an earnings announcement.

The combination of Manpower’s Zacks Rank #2 (Buy) and +1.30% ESP make us very confident regarding a positive earnings beat on Jan 30th.

What is Driving the Better than Expected Earnings?     

Manpower’s brand value and strong global network provides a competitive advantage to the company and reinforces its dominant position in the market. The company’s comprehensive range of services makes it a true global staffing firm. The company is contemplating on exiting its lower margin business and venturing into high margin business, as well as deriving benefits from growth prospects in under penetrated staffing markets. The company is also focusing on controlling expenses. On the other hand, the ManpowerGroup Solutions business is sustaining its growth momentum. All these factors are expected to drive results in the upcoming quarter.

The positive trend is seen in the trailing four-quarter average surprise of 19.3%.

Other Stocks to Consider

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:

Hertz Global Holdings, Inc. (HTZ - Snapshot Report), Earnings ESP of +6.25% and Zacks Rank #1 (Strong Buy)

Mastercard Incorporated (MA - Analyst Report), Earnings ESP of +1.25% and Zacks Rank #2 (Buy)

Global Payments Inc. (GPN - Snapshot Report), Earnings ESP of +1.14% and Zacks Rank #2 (Buy)

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
GENERAL FINA GFN 8.20 +5.67%
QIHOO 360 TE QIHU 91.57 +4.38%
VIPSHOP HOLD VIPS 140.01 +3.49%
INVEST TECH- ITG 19.16 +3.34%
VERTEX ENERG VTNR 7.38 +3.07%