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ManpowerGroup (MAN) Stock Barely Moves Since Q3 Earnings Beat
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ManpowerGroup Inc. (MAN - Free Report) reported mixed third-quarter 2023 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same. The earnings beat, however, failed to impress investors as the stock hardly moved since the earnings release on Oct 19.
Quarterly adjusted earnings of $1.38 per share surpassed the consensus mark by 3%. The bottom line, however, declined 37.6% year over year, mainly due to restructuring costs and Argentina-related non-cash currency translation losses. Revenues of $4.7 billion lagged the consensus mark by 0.7% and dipped 2.6% year over year on a reported basis. Revenues fell 5% on a constant-currency (cc) basis.
On an organic constant currency basis, Experis tumbled 10% year over year. Talent Solutions declined 14%. Manpower brand decreased 3% year over year.
ManpowerGroup shares have lost 8.3% over the past year compared with the 8.5% decline of the industry it belongs to.
ManpowerGroup Inc. Price, Consensus and EPS Surprise
Revenues from America of $1.1 billion came in line with our expectations but tumbled 10.4% year over year on a reported basis and 7% at cc. In the United States, revenues reached $752.6 million, surpassing our estimate of $742.3 million but declining 15.1% year over year. In the Other Americas subgroup, revenues of $353.2 million lagged our projection of $354.9 million but inched up 1.6% on a reported basis and 13.3% at cc.
Revenues from Southern Europe of $2.1 billion met our predictions and improved 3.4% on a reported basis. Yet, the metric fell 3.4% at cc.
Revenues from France came in at $1.2 billion, lagging our suggestion of $1.3 billion. The reading was up 4.4% on a reported basis. Nonetheless, it was down 3.4% at cc.
Revenues from Italy amounted to $413.7 million, lagging our forecast of $429.3 million. It improved 4.7% on a reported basis. Nevertheless, the measure contracted 3.1% at cc.
The Other Southern Europe sub-segment generated revenues of $485.1 million, which outshined our expectations of $448.3 million. It remained flat year over year on a reported basis. The reported figure was down 3.7% at cc.
Northern Europe revenues declined 4.2% on a reported basis and 9.5% at cc to $914.2 million, lagging our estimate of $947.7 million. APME revenues totaled $564.8 million compared with our anticipation of $563.7 million. The figure was down 3.8% on a reported basis and 1.6% at cc.
Operating Performance
The company registered operating profit of $69.8 million, down 56.8% year over year on a reported basis and 57.9% at cc. Our expectation was pegged at $102.6 million, down 36.5% year over year on a reported basis.
Operating profit margin of 1.5% decreased 190 basis points year over year. Our projection was pegged at $2.2%, down 120 basis points year over year.
Key Balance Sheet & Cash Flow Figures
ManpowerGroup exited the quarter with a cash and cash equivalent balance of $571.1 million compared with the prior quarter’s $407.6 million. Long-term debt was $948.5 million compared with $978.8 million in the preceding quarter.
The company generated $265.7 million of cash from operating activities. Capital expenditures were $20.5 million. It spent $49.9 million on repurchasing common stock in the quarter.
Q4 Outlook
ManpowerGroup expects EPS in the range of $1.17-$1.27 for the fourth quarter of 2023. The Zacks Consensus Estimate is currently pegged at $1.27. Revenues are projected to decline 3-7% year over year on a reported basis and 4-8% at cc. Gross profit margin is anticipated to be between 17.3% and 17.5%.
The company expects EBITA margin to be between 2.3% and 2.5%. Operating profit margin is anticipated in the 2.1-2.3% band.
The Interpublic Group of Companies, Inc. (IPG - Free Report) posted third-quarter 2023 results, wherein both earnings and revenues missed the Zacks Consensus Estimate.
IPG’s adjusted earnings of 70 cents per share lagged the consensus estimate by 6.7%. The bottom line, however, climbed 11.1% on a year-over-year basis.
Net revenues of $2.31 billion fell short of the consensus estimate by 3.3%. In the year-ago quarter, IPG’s net revenues were $2.3 billion. Total revenues of $2.68 billion increased 1.5% year over year.
Equifax Inc. (EFX - Free Report) reported lower-than-expected third-quarter 2023 results. Adjusted earnings (excluding 45 cents from non-recurring items) were $1.76 per share, missing the Zacks Consensus Estimate by 1.1%. Yet, the metric rose 1.7% from the year-ago figure.
EFX’s total revenues of $1.32 billion missed the consensus estimate by 0.7%. Nonetheless, the figure gained 6% from the year-ago figure on a reported basis and 6.5% on a local-currency basis.
Fiserv, Inc. (FI - Free Report) reported impressive third-quarter 2023 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate. Adjusted earnings per share of $1.96 exceeded the consensus mark by 1% and increased 20% year over year. Adjusted revenues of $4.62 billion surpassed the consensus estimate by 0.53% and jumped 8.2% year over year.
FI’s organic revenue growth was 12% in the quarter. This was driven by 20% and 6% growth in the Acceptance and Payments segments, respectively.
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ManpowerGroup (MAN) Stock Barely Moves Since Q3 Earnings Beat
ManpowerGroup Inc. (MAN - Free Report) reported mixed third-quarter 2023 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same. The earnings beat, however, failed to impress investors as the stock hardly moved since the earnings release on Oct 19.
Quarterly adjusted earnings of $1.38 per share surpassed the consensus mark by 3%. The bottom line, however, declined 37.6% year over year, mainly due to restructuring costs and Argentina-related non-cash currency translation losses. Revenues of $4.7 billion lagged the consensus mark by 0.7% and dipped 2.6% year over year on a reported basis. Revenues fell 5% on a constant-currency (cc) basis.
On an organic constant currency basis, Experis tumbled 10% year over year. Talent Solutions declined 14%. Manpower brand decreased 3% year over year.
ManpowerGroup shares have lost 8.3% over the past year compared with the 8.5% decline of the industry it belongs to.
ManpowerGroup Inc. Price, Consensus and EPS Surprise
ManpowerGroup Inc. price-consensus-eps-surprise-chart | ManpowerGroup Inc. Quote
Segmental Revenues
Revenues from America of $1.1 billion came in line with our expectations but tumbled 10.4% year over year on a reported basis and 7% at cc. In the United States, revenues reached $752.6 million, surpassing our estimate of $742.3 million but declining 15.1% year over year. In the Other Americas subgroup, revenues of $353.2 million lagged our projection of $354.9 million but inched up 1.6% on a reported basis and 13.3% at cc.
Revenues from Southern Europe of $2.1 billion met our predictions and improved 3.4% on a reported basis. Yet, the metric fell 3.4% at cc.
Revenues from France came in at $1.2 billion, lagging our suggestion of $1.3 billion. The reading was up 4.4% on a reported basis. Nonetheless, it was down 3.4% at cc.
Revenues from Italy amounted to $413.7 million, lagging our forecast of $429.3 million. It improved 4.7% on a reported basis. Nevertheless, the measure contracted 3.1% at cc.
The Other Southern Europe sub-segment generated revenues of $485.1 million, which outshined our expectations of $448.3 million. It remained flat year over year on a reported basis. The reported figure was down 3.7% at cc.
Northern Europe revenues declined 4.2% on a reported basis and 9.5% at cc to $914.2 million, lagging our estimate of $947.7 million. APME revenues totaled $564.8 million compared with our anticipation of $563.7 million. The figure was down 3.8% on a reported basis and 1.6% at cc.
Operating Performance
The company registered operating profit of $69.8 million, down 56.8% year over year on a reported basis and 57.9% at cc. Our expectation was pegged at $102.6 million, down 36.5% year over year on a reported basis.
Operating profit margin of 1.5% decreased 190 basis points year over year. Our projection was pegged at $2.2%, down 120 basis points year over year.
Key Balance Sheet & Cash Flow Figures
ManpowerGroup exited the quarter with a cash and cash equivalent balance of $571.1 million compared with the prior quarter’s $407.6 million. Long-term debt was $948.5 million compared with $978.8 million in the preceding quarter.
The company generated $265.7 million of cash from operating activities. Capital expenditures were $20.5 million. It spent $49.9 million on repurchasing common stock in the quarter.
Q4 Outlook
ManpowerGroup expects EPS in the range of $1.17-$1.27 for the fourth quarter of 2023. The Zacks Consensus Estimate is currently pegged at $1.27. Revenues are projected to decline 3-7% year over year on a reported basis and 4-8% at cc. Gross profit margin is anticipated to be between 17.3% and 17.5%.
The company expects EBITA margin to be between 2.3% and 2.5%. Operating profit margin is anticipated in the 2.1-2.3% band.
ManpowerGroup currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Earnings Snapshots
The Interpublic Group of Companies, Inc. (IPG - Free Report) posted third-quarter 2023 results, wherein both earnings and revenues missed the Zacks Consensus Estimate.
IPG’s adjusted earnings of 70 cents per share lagged the consensus estimate by 6.7%. The bottom line, however, climbed 11.1% on a year-over-year basis.
Net revenues of $2.31 billion fell short of the consensus estimate by 3.3%. In the year-ago quarter, IPG’s net revenues were $2.3 billion. Total revenues of $2.68 billion increased 1.5% year over year.
Equifax Inc. (EFX - Free Report) reported lower-than-expected third-quarter 2023 results. Adjusted earnings (excluding 45 cents from non-recurring items) were $1.76 per share, missing the Zacks Consensus Estimate by 1.1%. Yet, the metric rose 1.7% from the year-ago figure.
EFX’s total revenues of $1.32 billion missed the consensus estimate by 0.7%. Nonetheless, the figure gained 6% from the year-ago figure on a reported basis and 6.5% on a local-currency basis.
Fiserv, Inc. (FI - Free Report) reported impressive third-quarter 2023 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate. Adjusted earnings per share of $1.96 exceeded the consensus mark by 1% and increased 20% year over year. Adjusted revenues of $4.62 billion surpassed the consensus estimate by 0.53% and jumped 8.2% year over year.
FI’s organic revenue growth was 12% in the quarter. This was driven by 20% and 6% growth in the Acceptance and Payments segments, respectively.