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ManpowerGroup's (MAN) Q1 Earnings Beat Estimates, Up Y/Y
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ManpowerGroup Inc. (MAN - Free Report) reported impressive first-quarter 2022 results, with both earnings and revenues beating the Zacks Consensus Estimate.
Quarterly adjusted earnings of $1.88 per share beat the consensus mark by 20.5% and improved 69.4% year over year. The bottom line benefited from improvement in business mix and robust demand for higher margin offerings.
Revenues of $5.14 billion surpassed the consensus mark by 0.7% and inched up 4.5% year over year on a reported basis and 9.8% 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 and Talent Solutions grew a respective 31% and 10% on a reported basis, and 15% and 13% on an organic constant currency basis (cc). Manpower declined 2% on a reported basis but was up 5% at organic cc.
Over the past year, the ManpowerGroup stock has declined 18.6%, against 9% growth of the industry it belongs to.
Revenues from America totaled $1.25 billion, up 24.8% year over year on a reported basis and 25.7% at cc. In the United States, revenues came in at $889.4 million, up 46.1% year over year. In the Other Americas subgroup, revenues of $361.8 million declined 8.2% on a reported basis and 5.9% at cc.
Revenues from Southern Europe were up 1.6% on a reported basis and 8.4% at cc to $2.19 billion. Revenues from France came in at $1.19 billion, up 0.3% on a reported basis and 7.7% at cc. Revenues from Italy amounted to $445 million, up 10.5% on a reported basis and 18.6% at cc. The Other Southern Europe sub segment generated revenues of $556.5 million, down 2.1% on a reported basis but up 2.7% at cc.
Northern Europe revenues moved down 3.5% on a reported basis but were up 2% at cc to $1.09 billion. APME revenues totaled $618.2 million, down 1.5% on a reported basis and 6% at cc.
Operating Performance
The company incurred operating profit of $138.7 million, up 40.9% year over year on a reported basis and 49.3% at cc. Operating profit margin of 2.7% increased 70 basis points year over year.
Balance Sheet and Cash Flow
ManpowerGroup exited the quarter with cash and cash equivalents balance of $777.3 million compared with the prior quarter’s level of $847.8 million. Long-term debt at the end of the quarter was $551.3 million compared with $565.7 million reported in the preceding quarter.
The company generated $70.6 million of cash from operating activities while Capex was $19.4 million in the quarter. It paid $59.9 million of common stock in the quarter.
Q2 Outlook
ManpowerGroup expects second-quarter 2022 earnings per share in the range of $2.31-$2.39, the midpoint ($2.35) of which is above the current Zacks Consensus Estimate of $2.32 per share.
Zacks Rank and Stocks to Consider
Manpower Group currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Business Services sector that investors can consider are Cross Country Healthcare, Inc. (CCRN - Free Report) and FactSet Research Systems Inc. (FDS - Free Report) .
Cross Country Healthcare has an expected long-term earnings per share (three to five years) growth rate of 6.6%. CCRN has a trailing four-quarter earnings surprise of 41.5%, on average.
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ManpowerGroup's (MAN) Q1 Earnings Beat Estimates, Up Y/Y
ManpowerGroup Inc. (MAN - Free Report) reported impressive first-quarter 2022 results, with both earnings and revenues beating the Zacks Consensus Estimate.
Quarterly adjusted earnings of $1.88 per share beat the consensus mark by 20.5% and improved 69.4% year over year. The bottom line benefited from improvement in business mix and robust demand for higher margin offerings.
Revenues of $5.14 billion surpassed the consensus mark by 0.7% and inched up 4.5% year over year on a reported basis and 9.8% 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 and Talent Solutions grew a respective 31% and 10% on a reported basis, and 15% and 13% on an organic constant currency basis (cc). Manpower declined 2% on a reported basis but was up 5% at organic cc.
Over the past year, the ManpowerGroup stock has declined 18.6%, against 9% growth of the industry it belongs to.
ManpowerGroup Inc. Price
ManpowerGroup Inc. price | ManpowerGroup Inc. Quote
Segmental Revenues
Revenues from America totaled $1.25 billion, up 24.8% year over year on a reported basis and 25.7% at cc. In the United States, revenues came in at $889.4 million, up 46.1% year over year. In the Other Americas subgroup, revenues of $361.8 million declined 8.2% on a reported basis and 5.9% at cc.
Revenues from Southern Europe were up 1.6% on a reported basis and 8.4% at cc to $2.19 billion. Revenues from France came in at $1.19 billion, up 0.3% on a reported basis and 7.7% at cc. Revenues from Italy amounted to $445 million, up 10.5% on a reported basis and 18.6% at cc. The Other Southern Europe sub segment generated revenues of $556.5 million, down 2.1% on a reported basis but up 2.7% at cc.
Northern Europe revenues moved down 3.5% on a reported basis but were up 2% at cc to $1.09 billion. APME revenues totaled $618.2 million, down 1.5% on a reported basis and 6% at cc.
Operating Performance
The company incurred operating profit of $138.7 million, up 40.9% year over year on a reported basis and 49.3% at cc. Operating profit margin of 2.7% increased 70 basis points year over year.
Balance Sheet and Cash Flow
ManpowerGroup exited the quarter with cash and cash equivalents balance of $777.3 million compared with the prior quarter’s level of $847.8 million. Long-term debt at the end of the quarter was $551.3 million compared with $565.7 million reported in the preceding quarter.
The company generated $70.6 million of cash from operating activities while Capex was $19.4 million in the quarter. It paid $59.9 million of common stock in the quarter.
Q2 Outlook
ManpowerGroup expects second-quarter 2022 earnings per share in the range of $2.31-$2.39, the midpoint ($2.35) of which is above the current Zacks Consensus Estimate of $2.32 per share.
Zacks Rank and Stocks to Consider
Manpower Group currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Business Services sector that investors can consider are Cross Country Healthcare, Inc. (CCRN - Free Report) and FactSet Research Systems Inc. (FDS - Free Report) .
Cross Country Healthcare has an expected long-term earnings per share (three to five years) growth rate of 6.6%. CCRN has a trailing four-quarter earnings surprise of 41.5%, on average.
Cross Country Healthcare’s shares have surged 59.6% in the past year. CCRN sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
FactSet has an expected earnings growth rate of 16.1% for the current year. FDS has a trailing four-quarter earnings surprise of 6.1%, on average.
FactSet shares have surged 33.1% in the past year. FDS has a long-term earnings growth of 10%. FDS carries a Zacks Rank #2 (Buy).