It has been about a month since the last earnings report for ManpowerGroup (MAN Quick QuoteMAN - Free Report) . Shares have lost about 5.4% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Manpower due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.

ManpowerGroup Beats On Q3 Earnings, Revenue Miss

ManpowerGroup reported mixed third-quarter 2021 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same.

Quarterly adjusted earnings of $1.93 per share beat the consensus mark by 1.6% and improved 60.8% year over year. The bottom line benefited from improvement in business mix and permanent recruitment activity.

Revenues of $5.14 billion lagged the consensus mark by 2.9% but inched up 12% year over year on a reported basis and 11% on a constant-currency (cc) basis. Experis and Talent Solutions reported double digit revenue growth surpassing pre-pandemic levels.

ManpowerGroup completed ettain group acquisition on Oct 1. The buyout is expected to strengthen Experis’ global IT business, especially in serving Financial Services, Healthcare and Government clients. The combined entity is expected to have total annual revenues of more than $4.5 billion globally and more than $1.7 billion in North America.

Segmental Revenues

Revenues from America totaled $997.6 million, up 7.4% year over year on a reported basis and 7.7% at cc. In the United States, revenues came in at $644.9 million, up 11.4% year over year. In the Other Americas subgroup, revenues of $352.7 million grew marginally on a reported basis and 1.7% at cc.

Revenues from Southern Europe were up 12.8% on a reported basis and 11.7% at cc to $2.38 billion. Revenues from France came in at $1.32 billion, up 9.3% on a reported basis and 8.3% at cc. Revenues from Italy amounted to $456.4 million, up 30% on a reported basis and 28.8% at cc. The Other Southern Europe sub segment generated revenues of $609.2 million, up 9.6% on a reported basis and 8.1% at cc.

Northern Europe revenues moved up 23.1% on a reported basis and 19.2% at cc to $1.17 billion. APME revenues totaled $611.2 million, up 2.6% on a reported basis and 4% at cc.

Operating Performance

The company incurred adjusted operating profit of $162 million, up from $117 million from the year-ago quarter. Adjusted operating profit margin of 3.2% increased 60 basis points year over year.

Balance Sheet and Cash Flow

ManpowerGroup exited the quarter with cash and cash equivalents balance of $1.61 billion compared with the prior quarter’s level of $1.46 billion. Long-term debt at the end of the quarter was $582.6 million compared with $1.07 billion reported in the preceding quarter.

The company generated $187.5 million of cash from operating activities, while Capex was $15.1 million in the quarter.

Q4 Guidance

It expects earnings per share in the range of $1.99-$2.07.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended downward during the past month.

VGM Scores

At this time, Manpower has an average Growth Score of C, however its Momentum Score is doing a lot better with an A. Following the exact same course, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Manpower has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.