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ManpowerGroup (MAN) Beats Q4 Earnings and Revenue Estimates
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ManpowerGroup Inc. (MAN - Free Report) reported strong fourth-quarter 2017 results with healthy year-over-year increase in earnings and revenues on the back of diligent execution of operational plans. GAAP earnings were $216.3 million or $3.22 per share compared with $127.4 million or $1.87 per share in the year-earlier quarter. Adjusted earnings for the quarter were $2.12 per share and comfortably surpassed the Zacks Consensus Estimate of $2.05. The year-over-year improvement was attributable to significant top-line growth and favorable foreign currency movements. Moreover, the Tax Cuts and Jobs Act enacted in the fourth quarter also gave earnings a healthy boost. For full-year 2017, GAAP earnings were $545.4 million or $8.04 per share compared with $443.7 million or $6.27 per share in the prior year.
Revenues in the reported quarter came in at $5,637.5 million compared with $4,956.1 million in the year-ago quarter. Quarterly sales exceeded the Zacks Consensus Estimate of $5,550 million.
For 2017, the company generated total revenues of $21,034.3 million compared with $19,654.1 million in 2016.
Revenues generated from America were $1,071.8 million compared with $1062.9 million in the prior-year quarter.
Revenues from Southern Europe were $2,399 million compared with $1912.2 million in the prior-year quarter.
Aggregate quarterly revenues from Northern Europe, APME, Right Management were $1418.1 million, $695.2 million and $53.4 million compared with $1292.8 million, $629.6 million and $58.6 million in the year-ago quarter, respectively.
Margins
Operating profit for the reported quarter was $238.7 million compared with $212 million in the year-ago period. The increase in operating profit, despite rise in operating expenses, is due to significant top-line growth.
Operating profit for America increased to $57.7 million from $53.3 million of the prior-year quarter. Also, operating profit for South Europe and APME increased to $133.1 million and $28.1 million from $101.9 million and $21.7 million, respectively. However, operating profit for Northern Europe and Right Management decreased to $47.1 million and $10.6 million from $48.8 million and $11.9 million, respectively.
Balance Sheet and Cash Flow
ManpowerGroup exited 2017 with cash and cash equivalents of $689 million compared with $598.5 million in the previous year. Long-term debt was $478.1 million compared with $785.6 million in 2016.
For 2017, the company generated net cash of $400.9 million from its operating activities, down from $600 million recorded a year ago.
Outlook
ManpowerGroup is poised to grow on the back of a productive workforce and sound restructuring initiatives. Moreover, its strong global network also provides the company with a competitive advantage over its peers. Backed by these positives, this Zacks Rank #2 (Buy) company has given bullish first quarter earnings guidance. For first-quarter 2018, GAAP EPS is anticipated to lie within the $1.60-$1.68 per share range.
Robert Half International has exceeded estimates twice in the trailing four quarters with an average beat of 1.8%.
On Assignment has an expected long-term earnings growth rate of 10%. It exceeded estimates thrice in the trailing four quarters with an average beat of 5.4%.
Automatic Data Processing has an expected long-term earnings growth rate of 11%. It exceeded estimates thrice in the trailing four quarters with an average beat of 5.5%.
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It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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ManpowerGroup (MAN) Beats Q4 Earnings and Revenue Estimates
ManpowerGroup Inc. (MAN - Free Report) reported strong fourth-quarter 2017 results with healthy year-over-year increase in earnings and revenues on the back of diligent execution of operational plans. GAAP earnings were $216.3 million or $3.22 per share compared with $127.4 million or $1.87 per share in the year-earlier quarter. Adjusted earnings for the quarter were $2.12 per share and comfortably surpassed the Zacks Consensus Estimate of $2.05. The year-over-year improvement was attributable to significant top-line growth and favorable foreign currency movements. Moreover, the Tax Cuts and Jobs Act enacted in the fourth quarter also gave earnings a healthy boost. For full-year 2017, GAAP earnings were $545.4 million or $8.04 per share compared with $443.7 million or $6.27 per share in the prior year.
Revenues in the reported quarter came in at $5,637.5 million compared with $4,956.1 million in the year-ago quarter. Quarterly sales exceeded the Zacks Consensus Estimate of $5,550 million.
For 2017, the company generated total revenues of $21,034.3 million compared with $19,654.1 million in 2016.
ManpowerGroup Price, Consensus and EPS Surprise
ManpowerGroup Price, Consensus and EPS Surprise | ManpowerGroup Quote
Segmental Details for Q4
Revenues generated from America were $1,071.8 million compared with $1062.9 million in the prior-year quarter.
Revenues from Southern Europe were $2,399 million compared with $1912.2 million in the prior-year quarter.
Aggregate quarterly revenues from Northern Europe, APME, Right Management were $1418.1 million, $695.2 million and $53.4 million compared with $1292.8 million, $629.6 million and $58.6 million in the year-ago quarter, respectively.
Margins
Operating profit for the reported quarter was $238.7 million compared with $212 million in the year-ago period. The increase in operating profit, despite rise in operating expenses, is due to significant top-line growth.
Operating profit for America increased to $57.7 million from $53.3 million of the prior-year quarter. Also, operating profit for South Europe and APME increased to $133.1 million and $28.1 million from $101.9 million and $21.7 million, respectively. However, operating profit for Northern Europe and Right Management decreased to $47.1 million and $10.6 million from $48.8 million and $11.9 million, respectively.
Balance Sheet and Cash Flow
ManpowerGroup exited 2017 with cash and cash equivalents of $689 million compared with $598.5 million in the previous year. Long-term debt was $478.1 million compared with $785.6 million in 2016.
For 2017, the company generated net cash of $400.9 million from its operating activities, down from $600 million recorded a year ago.
Outlook
ManpowerGroup is poised to grow on the back of a productive workforce and sound restructuring initiatives. Moreover, its strong global network also provides the company with a competitive advantage over its peers. Backed by these positives, this Zacks Rank #2 (Buy) company has given bullish first quarter earnings guidance. For first-quarter 2018, GAAP EPS is anticipated to lie within the $1.60-$1.68 per share range.
Other Stocks to Consider
Other stocks worth considering in the industry include Robert Half International Inc. (RHI - Free Report) , On Assignment, Inc. (ASGN - Free Report) and Automatic Data Processing, Inc. (ADP - Free Report) each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Robert Half International has exceeded estimates twice in the trailing four quarters with an average beat of 1.8%.
On Assignment has an expected long-term earnings growth rate of 10%. It exceeded estimates thrice in the trailing four quarters with an average beat of 5.4%.
Automatic Data Processing has an expected long-term earnings growth rate of 11%. It exceeded estimates thrice in the trailing four quarters with an average beat of 5.5%.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>