We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
ManpowerGroup (MAN) Stock Declines 3% on Q2 Earnings Miss
Read MoreHide Full Article
ManpowerGroup Inc.’s(MAN - Free Report) shares dipped nearly 3% since its second-quarter 2023 earnings release on Jul 20, in response to the lower-than-expected results.
The company’s guidance didn’t seem impressive too as the expected EPS range of $1.32-$1.42 for the third quarter of 2023 is below the current Zacks Consensus Estimate of $1.46.
Second-quarter adjusted earnings of $1.58 per share lagged the consensus mark by 1.9% and declined 32.2% year over year, owing to restructuring costs and Argentina-related non-cash currency translation losses.
Revenues of $4.9 billion missed the consensus mark by 0.6% and decreased 4.3% year over year on a reported basis. Revenues decreased 3% on a constant-currency (cc) basis.
On an organic constant currency basis, Experis dropped 11% year over year and Talent Solutions declined 9%. Manpower brand decreased 1% year over year.
ManpowerGroup Inc. Price, Consensus and EPS Surprise
Revenues from America totaled $1.1 billion, down 13% year over year on a reported basis and 9.3% at cc. In the United States, revenues came in at $736.7 million, down 18.5% year over year. In the Other Americas subgroup, revenues of $362 million increased 0.9% on a reported basis and 14% at cc.
Revenues from Southern Europe improved 1.2% on a reported basis but declined 0.9% at cc to $2.2 billion. Revenues from France came in at $1.3 billion, up 3.2% on a reported basis and 0.9% at cc. Revenues from Italy amounted to $457.8 million, up 0.8% on a reported basis but down 1.5% at cc. The Other Southern Europe sub-segment generated revenues of $490.9 million were down 3.5% on a reported basis and 4.7% at cc.
Northern Europe revenues declined 7.3% on a reported basis and 6.3% at cc to $952.5 million. APME revenues totaled $599.4 million, down 0.7% on a reported basis but up 4.2% at cc.
Operating Performance
The company incurred an operating profit of $107.6 million, down 40% year over year on a reported basis and 39.1% at cc. This compares to our expectation of an operating profit of $130.5 million, down 28.9% year over year on a reported basis.
The operating profit margin of 2.2% decreased 140 basis points year over year. This compares with our expectation of an operating profit margin of $2.7%, down 90 basis points year over year.
Key Balance Sheet & Cash Flow Figures
ManpowerGroup exited the quarter with a cash and cash equivalents balance of $407.6 million compared with the prior quarter’s $706.7 million. Long-term debt at the end of the quarter was $978.8 million compared with the $972.4 million reported in the preceding quarter.
The company used $155.8 million of cash from operating activities. It spent $49.9 million repurchasing common stock and $73.1 million paying dividends in the quarter.
Zacks Rank
ManpowerGroup currently carries a Zacks Rank #4 (Sell).
Omnicom (OMC - Free Report) reported mixed second-quarter 2023 results, wherein the company’s earnings surpassed the Zacks Consensus Estimate but revenues missed the same.
OMC’s earnings of $1.81 per share beat the consensus estimate by 0.6% and increased 7.7% year over year. Total revenues of $3.6 billion lagged the consensus estimate by 0.3% but increased 1.2% year over year.
Equifax (EFX - Free Report) reported mixed second-quarter 2023 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same.
EFX’s adjusted earnings came in at $1.71 per share, beating the consensus mark by 2.4% but declining 18.2% from the year-ago figure. Total revenues of $1.32 billion missed the consensus estimate by 0.4% but matched the year-ago figure on a reported basis.
Interpublic’s (IPG - Free Report) second-quarter 2023 earnings surpassed the Zacks Consensus Estimate while revenues missed the same.
IPG’s adjusted earnings came in at 74 cents per share, beating the Zacks Consensus Estimate by 23.3% but declining 17.5% on a year-over-year basis. Net revenues of $2.33 billion missed the consensus estimate by 2.9% and decreased 14.9% on a year-over-year basis. Total revenues of $2.67 billion decreased 2.6% year over year.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
ManpowerGroup (MAN) Stock Declines 3% on Q2 Earnings Miss
ManpowerGroup Inc.’s (MAN - Free Report) shares dipped nearly 3% since its second-quarter 2023 earnings release on Jul 20, in response to the lower-than-expected results.
The company’s guidance didn’t seem impressive too as the expected EPS range of $1.32-$1.42 for the third quarter of 2023 is below the current Zacks Consensus Estimate of $1.46.
Second-quarter adjusted earnings of $1.58 per share lagged the consensus mark by 1.9% and declined 32.2% year over year, owing to restructuring costs and Argentina-related non-cash currency translation losses.
Revenues of $4.9 billion missed the consensus mark by 0.6% and decreased 4.3% year over year on a reported basis. Revenues decreased 3% on a constant-currency (cc) basis.
On an organic constant currency basis, Experis dropped 11% year over year and Talent Solutions declined 9%. Manpower brand decreased 1% year over year.
ManpowerGroup Inc. Price, Consensus and EPS Surprise
ManpowerGroup Inc. price-consensus-eps-surprise-chart | ManpowerGroup Inc. Quote
Segmental Revenues
Revenues from America totaled $1.1 billion, down 13% year over year on a reported basis and 9.3% at cc. In the United States, revenues came in at $736.7 million, down 18.5% year over year. In the Other Americas subgroup, revenues of $362 million increased 0.9% on a reported basis and 14% at cc.
Revenues from Southern Europe improved 1.2% on a reported basis but declined 0.9% at cc to $2.2 billion. Revenues from France came in at $1.3 billion, up 3.2% on a reported basis and 0.9% at cc. Revenues from Italy amounted to $457.8 million, up 0.8% on a reported basis but down 1.5% at cc. The Other Southern Europe sub-segment generated revenues of $490.9 million were down 3.5% on a reported basis and 4.7% at cc.
Northern Europe revenues declined 7.3% on a reported basis and 6.3% at cc to $952.5 million. APME revenues totaled $599.4 million, down 0.7% on a reported basis but up 4.2% at cc.
Operating Performance
The company incurred an operating profit of $107.6 million, down 40% year over year on a reported basis and 39.1% at cc. This compares to our expectation of an operating profit of $130.5 million, down 28.9% year over year on a reported basis.
The operating profit margin of 2.2% decreased 140 basis points year over year. This compares with our expectation of an operating profit margin of $2.7%, down 90 basis points year over year.
Key Balance Sheet & Cash Flow Figures
ManpowerGroup exited the quarter with a cash and cash equivalents balance of $407.6 million compared with the prior quarter’s $706.7 million. Long-term debt at the end of the quarter was $978.8 million compared with the $972.4 million reported in the preceding quarter.
The company used $155.8 million of cash from operating activities. It spent $49.9 million repurchasing common stock and $73.1 million paying dividends in the quarter.
Zacks Rank
ManpowerGroup 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 mixed second-quarter 2023 results, wherein the company’s earnings surpassed the Zacks Consensus Estimate but revenues missed the same.
OMC’s earnings of $1.81 per share beat the consensus estimate by 0.6% and increased 7.7% year over year. Total revenues of $3.6 billion lagged the consensus estimate by 0.3% but increased 1.2% year over year.
Equifax (EFX - Free Report) reported mixed second-quarter 2023 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same.
EFX’s adjusted earnings came in at $1.71 per share, beating the consensus mark by 2.4% but declining 18.2% from the year-ago figure. Total revenues of $1.32 billion missed the consensus estimate by 0.4% but matched the year-ago figure on a reported basis.
Interpublic’s (IPG - Free Report) second-quarter 2023 earnings surpassed the Zacks Consensus Estimate while revenues missed the same.
IPG’s adjusted earnings came in at 74 cents per share, beating the Zacks Consensus Estimate by 23.3% but declining 17.5% on a year-over-year basis. Net revenues of $2.33 billion missed the consensus estimate by 2.9% and decreased 14.9% on a year-over-year basis. Total revenues of $2.67 billion decreased 2.6% year over year.