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ManpowerGroup's Q3 Earnings Beat Estimates, Revenues Down Y/Y

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ManpowerGroupInc. (MAN - Free Report) reported better-than-expected third-quarter 2024 results.

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MAN’s quarterly adjusted earnings of $1.3 per share surpassed the consensus mark by a slight margin but declined 6.5% year over year, due to run-off Proservia Germany business and Argentina-related currency translation losses. Revenues of $4.5 billion surpassed the consensus mark by a slight margin but dipped 3% year over year on a reported basis and 2% on a constant-currency (cc) basis.

On an organic constant currency basis, Experis tumbled 10% year over year. Talent Solutions declined 14%, and the Manpower brand decreased 3% year over year.

ManpowerGroup shares have lost 17.9% year to date compared with the 17.4% decline of the industry.

ManpowerGroup Inc. Price, Consensus and EPS Surprise

ManpowerGroup Inc. Price, Consensus and EPS Surprise

ManpowerGroup Inc. price-consensus-eps-surprise-chart | ManpowerGroup Inc. Quote

MAN’s Segmental Revenues

Revenues from America of $1.1 billion were in line with our expectations but tumbled 5.5% year over year on a reported basis and increased 1.5% at cc. In the United States, revenues reached $697.4 million, surpassing our estimate of $696.4 million but declining 4.5% year over year. In the Other Americas subgroup, revenues of $353.1 million lagged our projection of $362 million. These revenues declined 7.3% on a reported basis but increased 13.1% at cc.

Revenues from Southern Europe of $2.1 billion were in line with our projection, declining slightly on a reported basis and 1.3% at cc. Revenues from France were $1.2 billion, in line with our expectations. These revenues were down 2.5% on a reported basis and 3.3% at cc. Revenues from Italy amounted to $419.1 million, surpassing our estimate of $410.5 million, which increased 1.3% on a reported basis and slightly at cc. The Other Southern Europe sub-segment generated revenues of $496.8 million, which outshined our expectations of $481.6 million. They were up 2.4% year over year on a reported basis and 2.1% at cc.

Northern Europe revenues declined 9.4% on a reported basis and 11% at cc to $828.3 million, lagging our estimate of $853.6 million. APME revenues totaled $562.8 million, surpassing our estimate of $545.5, down slightly on a reported basis but up 1.6% at cc.

MAN’s Operating Performance

The company registered an operating profit of $70.8 million, up 1.5% year over year on a reported basis and 4.5% at cc. Operating profit margin of 1.6% increased slightly year over year.

Key Balance Sheet & Cash Flow Figures

ManpowerGroup exited the quarter with a cash and cash equivalent balance of $410.9 million compared with the prior quarter’s $468.9 million. Long-term debt at the end of the quarter was $999.7 million compared with $961.7 million in the preceding quarter.

The company generated $83.5 million of cash from operating activities. Capital expenditures were $16.1 million. It spent $29 million repurchasing common stock in the quarter.

Q4 Outlook

ManpowerGroup expects EPS in the range of $1.17-$1.27, the midpoint ($1.22) of which is lower than the current Zacks Consensus Estimate of $1.35.

The company currently carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Earnings Snapshots

Omnicom (OMC - Free Report) reported impressive third-quarter 2024 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.

OMC’s earnings of $2 per share beat the consensus estimate by 3.1% and increased 9.1% year over year. Total revenues of $3.9 billion surpassed the consensus estimate by 2.3% and increased 8.5% year over year.

Equifax (EFX - Free Report) reported mixed third-quarter 2024 results, wherein earnings surpassed the Zacks Consensus Estimate while revenues missed the same.

EFX’s adjusted earnings were $1.8 per share, beating the Zacks Consensus Estimate by a slight margin and increasing by 5.1% from the year-ago quarter’s actual. Total revenues of $1.4 billion missed the consensus estimate by a slight margin but increased 9.3% from the year-ago quarter.


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