ManpowerGroup Inc. (MAN - Analyst Report) is slated to report third-quarter 2016 results before the opening bell on Oct 21, 2016. In the previous quarter, the company surpassed the Zacks Consensus estimate by 5.3%. Notably, it beat the Zacks Consensus Estimate in each of the last four quarters, with an average earnings surprise of 10.1%. However, it is to be seen if the company will be able to keep its earnings streak alive in this quarter as well.
Our proven model does not conclusively show that ManpowerGroup is likely to beat earnings estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. ManpowerGroup has an Earnings ESP of 0.00% as the Most Accurate estimate and the Zacks Consensus Estimate both stand at $1.71. The company carries a Zacks Rank #3. Though the company’s Zacks Rank #3 increases the predictive power of ESP, we need to have a positive ESP to be confident about an earnings surprise.
MANPOWER INC WI Price and EPS Surprise
Factors Influencing This Quarter
We believe the slow and uneven pace of global recovery may not bode well for the company. Moreover, the strengthening U.S. dollar will continue to affect ManpowerGroup’s quarterly performance as the international markets contribute nearly 85% of its revenues. More importantly, the Brexit will have an impact on its business. Management earlier said foreign currency headwinds are likely to hamper revenue growth by 3 cents per share during third-quarter 2016. Including a negative impact of foreign exchange, ManpowerGroup anticipates third-quarter 2016 earnings per share in the range of $1.66–$1.74. The company expects revenue growth in the Americas as well as Southern Europe to be in the flat to lower single-digit range. For Northern Europe and APME, it estimates revenue growth in the upper mid-single-digit range.
Stocks that Warrant a Look
Here are some companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Amazon.com, Inc. (AMZN - Analyst Report) has an Earnings ESP of +6.98% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Big 5 Sporting Goods Corp. (BGFV - Analyst Report) has an Earnings ESP of +3.33% and a Zacks Rank #1.
Mattel, Inc. (MAT - Analyst Report) has an Earnings ESP of +1.43% and flaunts a Zacks Rank #1.
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