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ManpowerGroup's (MAN) Q3 Earnings Beat on Estimates, Up Y/Y
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ManpowerGroup Inc. (MAN - Free Report) reported mixed third-quarter 2022 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same.
Quarterly adjusted earnings of $2.21 per share beat the consensus mark by 1.4% and improved 14.5% year over year. The bottom line benefited from robust demand for higher-margin offerings.
Revenues of $4.8 billion missed the consensus mark by 2% and decreased 6.6% year over year on a reported basis. Revenues increased 5% on a constant-currency (cc) basis and 2% on an organic cc basis.
Continued supply chain disruptions in certain European markets offset the positive impacts of the strong performance of higher-margin brands in the quarter. Experis and Talent Solutions grew 5% and 10% year over year, respectively. Manpower brand increased 1% year over year.
Segmental Revenues
Revenues from America totaled $1.24 billion, up 24.3% year over year on a reported basis and 27.1% at cc. In the United States, revenues came in at $886.6 million, up 37.5% year over year. In the Other Americas subgroup, revenues of $353.2 million increased marginally on a reported basis and 8.1% at cc.
Revenues from Southern Europe were down 14.4% on a reported basis and 0.7% at cc to $2.04 billion. Revenues from France came in at $1.16 billion, down 12% on a reported basis but up 3.1% at cc. Revenues from Italy amounted to $395.1 million, down 13.4% on a reported basis but up 1.4% at cc. The Other Southern Europe sub-segment generated revenues of $485.2 million, down 20.3% on a reported basis and 10.3% at cc.
Northern Europe revenues moved down 18.2% on a reported basis and 3.9% at cc to $954.1 million. APME revenues totaled $586.9 million, down 4% on a reported basis but up 12% at cc.
Operating Performance
The company incurred an operating profit of $161.5 million, up 7.4% year over year on a reported basis and 23.7% at cc. The operating profit margin of 3.4% increased 40 basis points year over year.
Balance Sheet and Cash Flow
ManpowerGroupexited the quarter with a cash and cash equivalents balance of $527.5 million compared with the prior quarter’s $886.2 million. Long-term debt at the end of the quarter was $883 million compared with $942.2 million reported in the preceding quarter.
The company generated $267.9 million of cash from operating activities. Capex was $14.2 million in the quarter. It spent $85 million repurchasing common stock in the quarter.
Q4 Outlook
ManpowerGroup expects fourth-quarter 2022 earnings per share to be in the range of $2.11-$2.19.
Recent Performance of a Couple of Other Business Services Companies
Equifax (EFX - Free Report) reported stellar third-quarter 2022 results, wherein both its earnings and revenues surpassed the Zacks Consensus Estimates.
EFX’s adjusted earnings of $1.73 per share beat the Zacks Consensus Estimate by 5.5% but decreased 6.5% on a year-over-year basis. Revenues of $1.24 billion beat the consensus estimate by 2.3% and improved 1.8% year over year.
OMC’s earnings of $1.77 per share beat the consensus mark by 7.9% and increased 7.3% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 3% and increased slightly year over year.
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ManpowerGroup's (MAN) Q3 Earnings Beat on Estimates, Up Y/Y
ManpowerGroup Inc. (MAN - Free Report) reported mixed third-quarter 2022 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same.
Quarterly adjusted earnings of $2.21 per share beat the consensus mark by 1.4% and improved 14.5% year over year. The bottom line benefited from robust demand for higher-margin offerings.
Revenues of $4.8 billion missed the consensus mark by 2% and decreased 6.6% year over year on a reported basis. Revenues increased 5% on a constant-currency (cc) basis and 2% on an organic cc basis.
Continued supply chain disruptions in certain European markets offset the positive impacts of the strong performance of higher-margin brands in the quarter. Experis and Talent Solutions grew 5% and 10% year over year, respectively. Manpower brand increased 1% year over year.
Segmental Revenues
Revenues from America totaled $1.24 billion, up 24.3% year over year on a reported basis and 27.1% at cc. In the United States, revenues came in at $886.6 million, up 37.5% year over year. In the Other Americas subgroup, revenues of $353.2 million increased marginally on a reported basis and 8.1% at cc.
Revenues from Southern Europe were down 14.4% on a reported basis and 0.7% at cc to $2.04 billion. Revenues from France came in at $1.16 billion, down 12% on a reported basis but up 3.1% at cc. Revenues from Italy amounted to $395.1 million, down 13.4% on a reported basis but up 1.4% at cc. The Other Southern Europe sub-segment generated revenues of $485.2 million, down 20.3% on a reported basis and 10.3% at cc.
Northern Europe revenues moved down 18.2% on a reported basis and 3.9% at cc to $954.1 million. APME revenues totaled $586.9 million, down 4% on a reported basis but up 12% at cc.
Operating Performance
The company incurred an operating profit of $161.5 million, up 7.4% year over year on a reported basis and 23.7% at cc. The operating profit margin of 3.4% increased 40 basis points year over year.
Balance Sheet and Cash Flow
ManpowerGroupexited the quarter with a cash and cash equivalents balance of $527.5 million compared with the prior quarter’s $886.2 million. Long-term debt at the end of the quarter was $883 million compared with $942.2 million reported in the preceding quarter.
The company generated $267.9 million of cash from operating activities. Capex was $14.2 million in the quarter. It spent $85 million repurchasing common stock in the quarter.
Q4 Outlook
ManpowerGroup expects fourth-quarter 2022 earnings per share to be in the range of $2.11-$2.19.
Recent Performance of a Couple of Other Business Services Companies
Equifax (EFX - Free Report) reported stellar third-quarter 2022 results, wherein both its earnings and revenues surpassed the Zacks Consensus Estimates.
EFX’s adjusted earnings of $1.73 per share beat the Zacks Consensus Estimate by 5.5% but decreased 6.5% on a year-over-year basis. Revenues of $1.24 billion beat the consensus estimate by 2.3% and improved 1.8% year over year.
Omnicom (OMC - Free Report) also reported better-than-expected third-quarter 2022 results.
OMC’s earnings of $1.77 per share beat the consensus mark by 7.9% and increased 7.3% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 3% and increased slightly year over year.