Back to top

Analyst Blog

ManpowerGroup Inc. (MAN - Analyst Report) recently announced its decision of a dividend hike. The company raised its semi-annual dividend by 7% to 46 cents (or 92 cents annually) from 43 cents a share (or 86 cents annually).

The increased dividend will be paid on Jun 14, 2013, to stockholders of record as of Jun 3, 2013. The dividend yield based on the new payout and the last closing market price is approximately 1.8%.

The news of the dividend hike reflects Manpower’s plan of utilizing free cash to enhance shareholders’ return, thereby boosting investors’ confidence in the stock.

This Zacks Rank #2 (Buy) company recently came up with better-than-expected first-quarter 2013 results. The company’s adjusted quarterly earnings came in at 63 cents a share that substantially surpassed the Zacks Consensus Estimate of 45 cents and jumped 26% year over year.

Manpower ended the quarter with cash and cash equivalents of $583.4 million, total debt of $751 million and shareholders’ equity of $2,501.1 million, reflecting a debt-to-capitalization ratio of 23.1%. The company has no borrowings under its $800 million revolving credit facility.

Manpower now expects second-quarter 2013 earnings in the range of 84 cents – 92 cents per share. Management anticipates second-quarter total revenue to decline between 3% and 5% in constant currency and at an equivalent rate in U.S. dollars from the prior-year quarter.

Revenues in the Americasare expected to remain flat, while it is expected to decline in the range of 8% and 10% in Southern Europe. Northern Europerevenues are projected to decrease in the range of 1% – 3%. The company expects APME and Right Management segments to register a decline in the low-single-digit in revenues.

Going forward, Manpower expects to generate higher gross margin from the Americasand Southern Europe, which in turn is expected to boost the overall gross margins of the company. Operating margin is expected to improve during the second quarter and projected in the range of 2.5% – 2.7%.

With a well-established network of approximately 3,500 offices in about 80 countries, Manpower currently offers its services to about 400,000 clients. We believe Manpower’s brand value, comprehensive range of services, and a strong global network provide a competitive advantage over its peers Robert Half International Inc. (RHI - Analyst Report), Kelly Services, Inc. (KELYA - Snapshot Report) and Korn/Ferry International (KFY - Snapshot Report) and reinforces its dominant position in the market.

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

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 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
CENTURY ALU… CENX 22.53 +4.50%
ERBA DIAGNO… ERB 2.91 +4.30%
PLANAR SYST… PLNR 4.31 +3.86%
MALLINCKROD… MNK 72.17 +3.83%
GTT COMMUNI… GTT 12.06 +3.52%