Yahoo Finance ManpowerGroup (MAN) Stock Barely Moves Since Q1 Earnings Beat
ManpowerGroup Inc. MAN reported mixed first-quarter 2024 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same. The earnings beat, however, failed to impress investors as the stock has hardly moved since the earnings release on Apr 18.
Quarterly adjusted earnings of 94 cents per share surpassed the consensus mark by 4.4% but declined 41.6% year over year, mainly due to run-off Proservia Germany business and Argentina-related currency translation losses. Revenues of $4.4 billion lagged the consensus mark by 0.6% and dipped 7% year over year on a reported basis and 5% on a constant-currency (cc) basis.
On an organic constant currency basis, Experis tumbled 11% year over year. Talent Solutions declined 11% and the Manpower brand decreased 3% year over year.
ManpowerGroup shares have lost 5.8% year to date compared with the 11% 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 8.3% year over year on a reported basis and 1.1% at cc. In the United States, revenues reached $741.6 million, surpassing our estimate of $671.2 million but down 8.3% year over year. In the Other Americas subgroup, revenues of $388.6 million surpassed our projection of $378.2 million. These revenues declined 8.4% on a reported basis but increased 12.5% at cc.
Revenues from Southern Europe of $2.1 billion lagged our projection of $2 billion, declining 4.2% on a reported basis and 4.9% at cc. Revenues from France came in at $1.2 billion, surpassing our expectation of $1.1 billion. The reading was down 4.3% on a reported basis and 5.4% at cc. Revenues from Italy amounted to $422.2 million, surpassing our forecast of $416.9 million. They declined 4.2% on a reported basis and 5.4% at cc.
The Other Southern Europe sub-segment generated revenues of $476.4 million, which outshined our expectations of $453.3 million. They declined 4.2% year over year on a reported basis and 4.9% at cc.
Northern Europe revenues declined 10.1% on a reported basis and 12.1% at cc to $967.6 million, surpassing our estimate of $857 million. APME revenues totaled $605.9 million compared with our anticipation of $522.6 million. The figure was down 11.7% on a reported basis and 4.8% at cc.
Operating Performance
The company registered an operating profit of $65.9 million, down 44.1% year over year on a reported basis and 41.7% at cc. Our expectation was $67.9 million, down 42.4% year over year on a reported basis.
Operating profit margin of 1.4% decreased 108 basis points year over year. Our projection was pegged at $1.5%, down 100 basis points year over year.
Key Balance Sheet & Cash Flow Figures
ManpowerGroup exited the quarter with a cash and cash equivalent balance of $604.8 million compared with the prior quarter’s $581.3 million. Long-term debt was $968.9 million compared with $990.5 million in the preceding quarter.
The company generated $116 million of cash from operating activities. Capital expenditures were $11.8 million. It spent $50 million repurchasing common stock in the quarter.
Q2 Outlook
ManpowerGroup expects EPS in the range of $1.24-$1.34, the midpoint ($1.29) of which is higher than the current Zacks Consensus Estimate of $1.25.
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
Omnicom OMC reported impressive first-quarter 2024 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.
OMC’s earnings of $1.67 per share beat the consensus estimate by 9.9% and increased 7.1% year over year. Total revenues of $3.6 billion surpassed the consensus estimate by 1.6% and increased 5.4% year over year.
Equifax EFX reported mixed first-quarter 2024 results, wherein earnings surpassed the Zacks Consensus Estimate but revenues missed the same.
EFX’s adjusted earnings were $1.5 per share, beating the Zacks Consensus Estimate by 4.2% and increasing 4.9% from the year-ago quarter. Total revenues of $1.4 billion missed the consensus estimate by a slight margin but increased 6.7% from the year-ago quarter.
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