Back to top

Image: Bigstock

ManpowerGroup (MAN) to Report Q3 Earnings: What's in Store?

Read MoreHide Full Article

ManpowerGroup Inc. (MAN - Free Report) is scheduled to report third-quarter 2019 results on Oct 18, before the opening bell.

So far this year, we observe that shares of the company have rallied 31.5% compared with 2.5% rise of the industry it belongs to.

 

Here are the expectations in detail.

Top-Line Expectations

Challenging market environment in Europe is likely to have hurt ManpowerGroup’s third-quarter revenues. The Zacks Consensus Estimate is pegged at $5.35 billion, indicating a decline of 1.3% year over year.  In second-quarter 2019, revenues of $5.04 billion decreased 8.6% year over year.

The company operates through five segments — Americas, Southern Europe, Northern Europe, Asia Pacific Middle East(APME) and Right Management.

The Americas segment is likely to have performed well in third-quarter 2019 on the back of revenue growth in the United States and Other Americas subgroups. The Southern Europe segment is also likely to have performed well in the quarter. Weakness in UK, Germany, Belgium and the Netherlands might reflect on Northern Europe segment’s results.

In the APME segment, sales declined sequentially in the second quarter, a trend that most likely continued in the third quarter because of weakness in Australia and New Zealand. Right Management business might have been hurt by reduced outplacement activity.

Earnings Likely to Decline Year Over Year

Unfavorable impact of foreign currency movements and French corporate tax rate change is likely to have partially offset higher effective tax rate. This is expected to get reflected in ManpowerGroup’s earnings in the to-be-reported quarter, the Zacks Consensus Estimate for which is pegged at $1.93 per share, indicating decline of 21.9% from the year-ago quarter reported figure. The consensus estimate lies within the company guided range of $1.88-$1.96.

In second-quarter 2019, adjusted earnings of $1.39 decreased 19.2% on a year-over-year basis.

ManpowerGroup Inc. Price and EPS Surprise

 

ManpowerGroup Inc. Price and EPS Surprise

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

What Our Model Says

According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided, especially when the company is seeing negative estimate revisions. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .

ManpowerGroup has an Earnings ESP of 0.10% and a Zacks Rank #4.

Stocks to Consider

Here are a few stocks from the broader Zacks Business Services sector that investors may consider as our model shows that these have the right combination of elements to beat on third-quarter 2019 earnings:

S&P Global (SPGI - Free Report) has an Earnings ESP of +2.16% and a Zacks Rank #2. The company is slated to report results on Oct 29. You can see the complete list of today’s Zacks #1 Rank stocks here.

TransUnion (TRU - Free Report) has an Earnings ESP of +1.70% and a Zacks Rank #3. The company is slated to release results on Oct 22.

Verisk (VRSK - Free Report) has an Earnings ESP of +2.22% and a Zacks Rank #3. The company is slated to report results on Oct 29.

Breakout Biotech Stocks with Triple-Digit Profit Potential

The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.

Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +98%, +119% and +164% in as little as 1 month. The stocks in this report could perform even better.

See these 7 breakthrough stocks now>>

Published in