ManpowerGroup Inc. (MAN - Free Report) reported better-than-expected first-quarter 2021 results, with earnings and revenues beating the Zacks Consensus Estimate.
The stock gained 5.8% since the earnings release on Apr 20, as the company‘s earnings guidance for second-quarter 2021 was impressive. ManpowerGroup expects earnings per share in the range of $1.36-$1.44, which is above the current Zacks Consensus Estimate of $1.34 per share. In the past year, the stock has gained 64.3% compared with 72.9% increase of the industry it belongs to.
Quarterly adjusted earnings of $1.11 per share beat the consensus mark by 68.2%. Moreover, the bottom line increased 35.4% year over year, driven by favourable foreign currency rate.
Revenues of $4.92 billion beat the consensus mark by 5.6%. The top line inched up 7% year over year on a reported basis and 1% on a constant-currency (cc) basis.
Segmental Revenues
Revenues from America totalled $1,002.9 million, down 0.8% year over year on a reported basis but up 1.1% at cc. In the United States, revenues came in at $608.8 million, down 0.3% year over year. In the Other Americas subgroup, revenues of $394.1 million fell 1.5% on a reported basis but increased 3.3% at cc. Americas contributed 20.4% to total revenues.
Revenues from Southern Europe were up 11.1% on a reported basis and 2% at cc to $2.16 billion. Revenues from France came in at $1.2 billion, up 8.7% on a reported basis but down 0.5% at cc. Revenues from Italy amounted to $402.8 million, up 22.9% on a reported basis and 12.5% at cc. The Other Southern Europe sub segment generated revenues of $568.6 million, up 8.7% on a reported basis and 0.8% at cc. Southern Europe contributed 44% to total revenues.
Northern Europe revenues moved up 6.1% on a reported basis but slipped 2.3% at cc to $1.13 billion. The segment contributed 23% to total revenues in the quarter.
APME revenues totaled $627.4 million, up 5.5% on a reported basis and 0.3% at cc. The segment contributed 12.7% to total revenues.
Operating Performance
Gross profit in the quarter was $768.1 million, up 6.1% year over year on a reported basis and 0.5% at cc. Gross profit margin came in at 15.6%, down 10 basis points (bps) year over year.
The company incurred operating profit of $98.4 million, up 100% year over year. Operating profit margin expanded 120 bps year over year.
Balance Sheet and Cash Flow
ManpowerGroup, carrying a Zacks #2 (Buy) Rank exited the quarter with cash and cash equivalents balance of $1.52 billion compared with the prior quarter’s level of $1.56 billion. Long-term debt at the end of the quarter was $1.06 billion compared with the $1.10 billion reported in the preceding quarter.
The company used $795.5 million of cash from operating activities, while Capex was $38 million in the quarter.
You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Performance of Other Business Services Companies
Equifax’s (EFX - Free Report) first-quarter 2021 adjusted earnings of $1.97 per share beat the Zacks Consensus Estimate by 29.6% and increased on a year-over-year basis. Revenues of $1.21 billion outpaced the consensus estimate by 7.9% and rose 26.6% year over year on a reported basis as well as on a local-currency basis.
Robert Half’s (RHI - Free Report) first-quarter 2021 earnings of 98 cents per share beat the consensus mark by 22.5% and were up 24.1% year over year. Revenues of $1.4 billion surpassed the consensus mark by 3.3% but declined 7.2% year over year on a reported basis and 7.6% on an adjusted basis.
Omnicom’s (OMC - Free Report) first-quarter 2021 adjusted earnings of $1.33 per share beat the consensus mark by 16.7% and increased 11.8% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 3.6% and increased marginally year over year.
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ManpowerGroup Inc. (MAN - Free Report) reported better-than-expected first-quarter 2021 results, with earnings and revenues beating the Zacks Consensus Estimate.
The stock gained 5.8% since the earnings release on Apr 20, as the company‘s earnings guidance for second-quarter 2021 was impressive. ManpowerGroup expects earnings per share in the range of $1.36-$1.44, which is above the current Zacks Consensus Estimate of $1.34 per share. In the past year, the stock has gained 64.3% compared with 72.9% increase of the industry it belongs to.
Quarterly adjusted earnings of $1.11 per share beat the consensus mark by 68.2%. Moreover, the bottom line increased 35.4% year over year, driven by favourable foreign currency rate.
Revenues of $4.92 billion beat the consensus mark by 5.6%. The top line inched up 7% year over year on a reported basis and 1% on a constant-currency (cc) basis.
Segmental Revenues
Revenues from America totalled $1,002.9 million, down 0.8% year over year on a reported basis but up 1.1% at cc. In the United States, revenues came in at $608.8 million, down 0.3% year over year. In the Other Americas subgroup, revenues of $394.1 million fell 1.5% on a reported basis but increased 3.3% at cc. Americas contributed 20.4% to total revenues.
Revenues from Southern Europe were up 11.1% on a reported basis and 2% at cc to $2.16 billion. Revenues from France came in at $1.2 billion, up 8.7% on a reported basis but down 0.5% at cc. Revenues from Italy amounted to $402.8 million, up 22.9% on a reported basis and 12.5% at cc. The Other Southern Europe sub segment generated revenues of $568.6 million, up 8.7% on a reported basis and 0.8% at cc. Southern Europe contributed 44% to total revenues.
Northern Europe revenues moved up 6.1% on a reported basis but slipped 2.3% at cc to $1.13 billion. The segment contributed 23% to total revenues in the quarter.
APME revenues totaled $627.4 million, up 5.5% on a reported basis and 0.3% at cc. The segment contributed 12.7% to total revenues.
Operating Performance
Gross profit in the quarter was $768.1 million, up 6.1% year over year on a reported basis and 0.5% at cc. Gross profit margin came in at 15.6%, down 10 basis points (bps) year over year.
The company incurred operating profit of $98.4 million, up 100% year over year. Operating profit margin expanded 120 bps year over year.
Balance Sheet and Cash Flow
ManpowerGroup, carrying a Zacks #2 (Buy) Rank exited the quarter with cash and cash equivalents balance of $1.52 billion compared with the prior quarter’s level of $1.56 billion. Long-term debt at the end of the quarter was $1.06 billion compared with the $1.10 billion reported in the preceding quarter.
The company used $795.5 million of cash from operating activities, while Capex was $38 million in the quarter.
You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Performance of Other Business Services Companies
Equifax’s (EFX - Free Report) first-quarter 2021 adjusted earnings of $1.97 per share beat the Zacks Consensus Estimate by 29.6% and increased on a year-over-year basis. Revenues of $1.21 billion outpaced the consensus estimate by 7.9% and rose 26.6% year over year on a reported basis as well as on a local-currency basis.
Robert Half’s (RHI - Free Report) first-quarter 2021 earnings of 98 cents per share beat the consensus mark by 22.5% and were up 24.1% year over year. Revenues of $1.4 billion surpassed the consensus mark by 3.3% but declined 7.2% year over year on a reported basis and 7.6% on an adjusted basis.
Omnicom’s (OMC - Free Report) first-quarter 2021 adjusted earnings of $1.33 per share beat the consensus mark by 16.7% and increased 11.8% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 3.6% and increased marginally year over year.
Zacks' Top Picks to Cash in on Artificial Intelligence
In 2021, this world-changing technology is projected to generate $327.5 billion in revenue. Now Shark Tank star and billionaire investor Mark Cuban says AI will create "the world's first trillionaires." Zacks' urgent special report reveals 3 AI picks investors need to know about today.
See 3 Artificial Intelligence Stocks With Extreme Upside Potential>>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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