Back to top

Analyst Blog

ManpowerGroup Inc. (MAN - Analyst Report) is slated to report its first-quarter 2013 results before the market opens on Apr 19. In the last quarter, it posted a positive surprise of 18.2%. Let’s see how things are shaping up for this announcement.

Growth Factors this Past Quarter

Manpower, the global leader in the employment services industry, posted stronger-than- anticipated fourth-quarter 2012 results on the back of effective cost management and better gross margin. The company is contemplating on exiting lower margin business and venturing into high margin business. On the other hand, the ManpowerGroup Solutions business sustained its growth momentum. The demand for the counter-cyclical outplacement services also portrayed signs of steadiness, which increased 16% during the quarter. Canada, U.K., China and India, all contributed to the company’s growth story.

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 -2.27%. This is because the Most Accurate Estimate stands at 43 cents, while the Zacks Consensus Estimate is pegged at 44 cents.

Zacks Rank #2 (Buy): Manpower’s Zacks Rank #2 (Buy) lowers the predictive power of ESP because the Zacks Rank #2 when combined with a negative 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.

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 this quarter:
Hertz Global Holdings, Inc. (HTZ - Snapshot Report), Earnings ESP of +5.56% and a Zacks Rank #1 (Strong Buy).
Conn’s, Inc. (CONN - Snapshot Report), Earnings ESP of +3.85% and a Zacks Rank #1 (Strong Buy).
Kraft Foods Group, Inc. (KRFT - Analyst Report), Earnings ESP of +3.13% and a 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

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
ERBA DIAGNO… ERB 3.80 +7.04%
BANCO DO BR… BDORY 14.74 +5.66%
AIR INDUSTR… AIRI 9.99 +4.15%
EQT MIDSTRE… EQM 98.14 +3.38%
WEATHERFORD… WFT 23.64 +3.10%