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Why Is Manpower (MAN) Down 5.4% Since Last Earnings Report?
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A month has gone by since the last earnings report for ManpowerGroup (MAN - 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 its most recent earnings report in order to get a better handle on the important drivers.
ManpowerGroupreported 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.
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.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
The consensus estimate has shifted 22.31% due to these changes.
VGM Scores
Currently, Manpower has a great Growth Score of A, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of A on the value side, putting it in the top 20% 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 trending upward for the stock, and the magnitude of this revision looks promising. Notably, Manpower has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Manpower (MAN) Down 5.4% Since Last Earnings Report?
A month has gone by since the last earnings report for ManpowerGroup (MAN - 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 its most recent earnings report in order to get a better handle on the important drivers.
ManpowerGroup Surpasses Q4 Earnings & Revenue Estimates
ManpowerGroupreported 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.
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.
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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in estimates review.
The consensus estimate has shifted 22.31% due to these changes.
VGM Scores
Currently, Manpower has a great Growth Score of A, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of A on the value side, putting it in the top 20% 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 trending upward for the stock, and the magnitude of this revision looks promising. Notably, Manpower has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.