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ManpowerGroup's (MAN) Q4 Earnings Beat Estimates, Up Y/Y
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ManpowerGroup Inc. (MAN - Free Report) reported impressive fourth-quarter 2021 results, with both earnings and revenues beating the Zacks Consensus Estimate.
Quarterly adjusted earnings of $2.2 per share beat the consensus mark by 9.5% and improved 48.7% year over year. The bottom line benefited from improvement in business mix, strengthening of operating leverage and impacts of the ettain acquisition.
Revenues of $5.38 billion surpassed the consensus mark by 0.6% and inched up 6.5% year over year on a reported basis and 9% on a constant-currency (cc) basis. The top-line growth was driven by growth in higher-margin offerings and higher levels of permanent recruitment activity. Experis, Talent Solutions and Manpower grew a respective 33%, 10% and 1% on a reported basis and 14%, 11% and 4% on an organic constant currency basis (cc), respectively.
Over the past year, the ManpowerGroup stock has gained 19.9%, underperforming the 36.1% growth of the industry it belongs to.
Segmental Revenues
Revenues from America totaled $1.22 billion, up 20% year over year on a reported basis and 21.6% at cc. In the United States, revenues came in at $860.8 million, up 38.5% year over year. In the Other Americas subgroup, revenues of $358.1 million declined marginally on a reported basis and 5% at cc.
Revenues from Southern Europe were up 2.3% on a reported basis and 6.2% at cc to $2.38 billion. Revenues from France came in at $1.32 billion, up 1.2% on a reported basis and 5.5% at cc. Revenues from Italy amounted to $467.1 million, up 10.3% on a reported basis and 15.2% at cc. The Other Southern Europe sub segment generated revenues of $595.8 million, down marginally on a reported basis but up1.3% at cc.
Northern Europe revenues moved up 7.7% on a reported basis and 8.6% at cc to $1.18 billion. APME revenues totaled $622.6 million, up marginally on a reported basis and 6.9% at cc.
Operating Performance
The company incurred operating profit of $166.6 million, up 20.4% year over year on a reported basis and 24.7% at cc. Operating profit margin of 3.2% increased 30 basis points year over year.
ManpowerGroup Inc. Price, Consensus and EPS Surprise
ManpowerGroup exited the quarter with cash and cash equivalents balance of $847.8 million compared with the prior quarter’s level of $1.61 billion. Long-term debt at the end of the quarter was $565.7 million compared with $582.6 million reported in the preceding quarter.
The company generated $261.9 million of cash from operating activities, while Capex was $24.5 million in the quarter. It paid $68.3 million in dividends and repurchased $59.9 million of common stock in the quarter.
Q1 Outlook
ManpowerGroup expects first-quarter 2022 earnings per share in the range of $1.56-$1.64, above the current Zacks Consensus Estimate of $1.3 per share.
ManpowerGroup currently carries a Zacks Rank #3 (Hold).
Performance of Some Other Business Services Companies
Robert Half International (RHI - Free Report) delivered fourth-quarter 2021 earnings of $1.51 per share that beat the consensus mark by 5.6% and rose 79.8% year over year.
Revenues of $1.77 billion surpassed the consensus mark by 4.3% and increased 36.2% year over year on a reported basis and 36% on an as-adjusted basis. RHI currently carries a Zacks Rank #1 (Strong Sell).
Automatic Data Processing (ADP - Free Report) reported better-than-expected second-quarter fiscal 2022 results. Adjusted EPS of $1.65 beat the Zacks Consensus Estimate by 1.2% and rose 9% year over year.
Total revenues of $4.03 billion beat the consensus mark by 1.1% and increased 9% year over year. ADP currently carries a Zacks Rank #2 (Buy).
Rollins (ROL - Free Report) reported mixed fourth-quarter 2021 results, with earnings meeting the Zacks Consensus Estimate and revenues beating the same. Adjusted earnings of 14 cents per share meet the Zacks Consensus Estimate and increased 7.7% year over year.
Revenues of $600.3 million beat the consensus mark by 3.3% and rose 11.9% year over year. ROL currently carries a Zacks Rank #2.
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ManpowerGroup's (MAN) Q4 Earnings Beat Estimates, Up Y/Y
ManpowerGroup Inc. (MAN - Free Report) reported impressive fourth-quarter 2021 results, with both earnings and revenues beating the Zacks Consensus Estimate.
Quarterly adjusted earnings of $2.2 per share beat the consensus mark by 9.5% and improved 48.7% year over year. The bottom line benefited from improvement in business mix, strengthening of operating leverage and impacts of the ettain acquisition.
Revenues of $5.38 billion surpassed the consensus mark by 0.6% and inched up 6.5% year over year on a reported basis and 9% on a constant-currency (cc) basis. The top-line growth was driven by growth in higher-margin offerings and higher levels of permanent recruitment activity. Experis, Talent Solutions and Manpower grew a respective 33%, 10% and 1% on a reported basis and 14%, 11% and 4% on an organic constant currency basis (cc), respectively.
Over the past year, the ManpowerGroup stock has gained 19.9%, underperforming the 36.1% growth of the industry it belongs to.
Segmental Revenues
Revenues from America totaled $1.22 billion, up 20% year over year on a reported basis and 21.6% at cc. In the United States, revenues came in at $860.8 million, up 38.5% year over year. In the Other Americas subgroup, revenues of $358.1 million declined marginally on a reported basis and 5% at cc.
Revenues from Southern Europe were up 2.3% on a reported basis and 6.2% at cc to $2.38 billion. Revenues from France came in at $1.32 billion, up 1.2% on a reported basis and 5.5% at cc. Revenues from Italy amounted to $467.1 million, up 10.3% on a reported basis and 15.2% at cc. The Other Southern Europe sub segment generated revenues of $595.8 million, down marginally on a reported basis but up1.3% at cc.
Northern Europe revenues moved up 7.7% on a reported basis and 8.6% at cc to $1.18 billion. APME revenues totaled $622.6 million, up marginally on a reported basis and 6.9% at cc.
Operating Performance
The company incurred operating profit of $166.6 million, up 20.4% year over year on a reported basis and 24.7% at cc. Operating profit margin of 3.2% increased 30 basis points year over year.
ManpowerGroup Inc. Price, Consensus and EPS Surprise
ManpowerGroup Inc. price-consensus-eps-surprise-chart | ManpowerGroup Inc. Quote
Balance Sheet and Cash Flow
ManpowerGroup exited the quarter with cash and cash equivalents balance of $847.8 million compared with the prior quarter’s level of $1.61 billion. Long-term debt at the end of the quarter was $565.7 million compared with $582.6 million reported in the preceding quarter.
The company generated $261.9 million of cash from operating activities, while Capex was $24.5 million in the quarter. It paid $68.3 million in dividends and repurchased $59.9 million of common stock in the quarter.
Q1 Outlook
ManpowerGroup expects first-quarter 2022 earnings per share in the range of $1.56-$1.64, above the current Zacks Consensus Estimate of $1.3 per share.
ManpowerGroup currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Performance of Some Other Business Services Companies
Robert Half International (RHI - Free Report) delivered fourth-quarter 2021 earnings of $1.51 per share that beat the consensus mark by 5.6% and rose 79.8% year over year.
Revenues of $1.77 billion surpassed the consensus mark by 4.3% and increased 36.2% year over year on a reported basis and 36% on an as-adjusted basis. RHI currently carries a Zacks Rank #1 (Strong Sell).
Automatic Data Processing (ADP - Free Report) reported better-than-expected second-quarter fiscal 2022 results. Adjusted EPS of $1.65 beat the Zacks Consensus Estimate by 1.2% and rose 9% year over year.
Total revenues of $4.03 billion beat the consensus mark by 1.1% and increased 9% year over year. ADP currently carries a Zacks Rank #2 (Buy).
Rollins (ROL - Free Report) reported mixed fourth-quarter 2021 results, with earnings meeting the Zacks Consensus Estimate and revenues beating the same. Adjusted earnings of 14 cents per share meet the Zacks Consensus Estimate and increased 7.7% year over year.
Revenues of $600.3 million beat the consensus mark by 3.3% and rose 11.9% year over year. ROL currently carries a Zacks Rank #2.