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ManpowerGroup (MAN) Q2 Earnings Beat Estimates, Revenues Lag
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ManpowerGroup Inc. (MAN - Free Report) reported mixed second-quarter 2024 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same.
Quarterly adjusted earnings of $1.3 per share surpassed the consensus mark by 2.4% but declined 17.7% year over year, mainly due to run-off Proservia Germany business and Argentina-related currency translation losses. Revenues of $4.5 billion lagged the consensus mark by a slight margin and dipped 6.9% year over year on a reported basis and 3% on a constant-currency (cc) basis.
On an organic constant currency basis, Experis tumbled 7% year over year. Talent Solutions declined 9%, and the Manpower brand decreased 2% year over year.
ManpowerGroup shares have lost 10.3% year to date compared with the 12.1% decline of the industry it belongs to.
Revenues from America of $1.1 billion surpassed our expectations of $1 billion but tumbled 3.1% year over year on a reported basis and increased 5% at cc. In the United States, revenues reached $697 million, surpassing our estimate of $676.3 million but down 1.7% year over year. In the Other Americas subgroup, revenues of $367.4 million surpassed our projection of $343.8 million. These revenues declined 5.7% on a reported basis but increased 17.1% at cc.
Revenues from Southern Europe of $2.1 billion lagged our projection by a slight margin, declining 5.8% on a reported basis and 4.4% at cc. Revenues from France came in at $1.2 billion, lagging our estimate by a slight margin. The reading was down 7.3% on a reported basis and 6.2% at cc. Revenues from Italy amounted to $434.9 million, lagging our estimate of $437.1 million. They declined 5% on a reported basis and 3.9% at cc. The Other Southern Europe sub-segment generated revenues of $478.2 million, which outshined our expectations of $457.4 million. They declined 2.6% year over year on a reported basis and stayed flat at cc.
Northern Europe revenues declined 12.1% on a reported basis and 12% at cc to $837.3 million, lagging our estimate of $869.4 million. APME revenues totaled $541.4 million, matching our estimate. The figure was down 9.7% on a reported basis and 2% at cc.
Operating Performance
The company registered an operating profit of $101.1 million, down 6.1% year over year on a reported basis and marginally at cc. Operating profit margin of 1.4% decreased slightly year over year.
Key Balance Sheet & Cash Flow Figures
ManpowerGroup exited the quarter with a cash and cash equivalent balance of $468.9 million compared with the prior quarter’s $604.8 million. Long-term debt at the end of the quarter was $961.7 million compared with $968.9 million in the preceding quarter.
The company used $137.9 million of cash in operating activities. Capital expenditures were $11.9 million. It spent $27 million repurchasing common stock in the quarter.
Q2 Outlook
ManpowerGroup expects EPS in the range of $1.25-$1.35, the midpoint ($1.3) of which is lower than the current Zacks Consensus Estimate of $1.33.
Omnicom (OMC - Free Report) reported impressive second-quarter 2024 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.
OMC’s earnings of $1.95 per share beat the consensus estimate by 3.7% and increased 7.7% year over year. Total revenues of $3.9 billion surpassed the consensus estimate by 1.1% and increased 6.8% year over year.
EFX’s adjusted earnings were $1.82 per share, beating the Zacks Consensus Estimate by 5.8% and increasing 6.4% from the year-ago quarter. Total revenues of $1.4 billion missed the consensus estimate by a slight margin but increased 8.6% from the year-ago quarter.
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ManpowerGroup (MAN) Q2 Earnings Beat Estimates, Revenues Lag
ManpowerGroup Inc. (MAN - Free Report) reported mixed second-quarter 2024 results, with earnings beating the Zacks Consensus Estimate but revenues missing the same.
Quarterly adjusted earnings of $1.3 per share surpassed the consensus mark by 2.4% but declined 17.7% year over year, mainly due to run-off Proservia Germany business and Argentina-related currency translation losses. Revenues of $4.5 billion lagged the consensus mark by a slight margin and dipped 6.9% year over year on a reported basis and 3% on a constant-currency (cc) basis.
On an organic constant currency basis, Experis tumbled 7% year over year. Talent Solutions declined 9%, and the Manpower brand decreased 2% year over year.
ManpowerGroup shares have lost 10.3% year to date compared with the 12.1% decline of the industry it belongs to.
ManpowerGroup Inc. Price
ManpowerGroup Inc. price | ManpowerGroup Inc. Quote
Segmental Revenues
Revenues from America of $1.1 billion surpassed our expectations of $1 billion but tumbled 3.1% year over year on a reported basis and increased 5% at cc. In the United States, revenues reached $697 million, surpassing our estimate of $676.3 million but down 1.7% year over year. In the Other Americas subgroup, revenues of $367.4 million surpassed our projection of $343.8 million. These revenues declined 5.7% on a reported basis but increased 17.1% at cc.
Revenues from Southern Europe of $2.1 billion lagged our projection by a slight margin, declining 5.8% on a reported basis and 4.4% at cc. Revenues from France came in at $1.2 billion, lagging our estimate by a slight margin. The reading was down 7.3% on a reported basis and 6.2% at cc. Revenues from Italy amounted to $434.9 million, lagging our estimate of $437.1 million. They declined 5% on a reported basis and 3.9% at cc. The Other Southern Europe sub-segment generated revenues of $478.2 million, which outshined our expectations of $457.4 million. They declined 2.6% year over year on a reported basis and stayed flat at cc.
Northern Europe revenues declined 12.1% on a reported basis and 12% at cc to $837.3 million, lagging our estimate of $869.4 million. APME revenues totaled $541.4 million, matching our estimate. The figure was down 9.7% on a reported basis and 2% at cc.
Operating Performance
The company registered an operating profit of $101.1 million, down 6.1% year over year on a reported basis and marginally at cc. Operating profit margin of 1.4% decreased slightly year over year.
Key Balance Sheet & Cash Flow Figures
ManpowerGroup exited the quarter with a cash and cash equivalent balance of $468.9 million compared with the prior quarter’s $604.8 million. Long-term debt at the end of the quarter was $961.7 million compared with $968.9 million in the preceding quarter.
The company used $137.9 million of cash in operating activities. Capital expenditures were $11.9 million. It spent $27 million repurchasing common stock in the quarter.
Q2 Outlook
ManpowerGroup expects EPS in the range of $1.25-$1.35, the midpoint ($1.3) of which is lower than the current Zacks Consensus Estimate of $1.33.
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 - Free Report) reported impressive second-quarter 2024 results, wherein both earnings and revenues beat the Zacks Consensus Estimate.
OMC’s earnings of $1.95 per share beat the consensus estimate by 3.7% and increased 7.7% year over year. Total revenues of $3.9 billion surpassed the consensus estimate by 1.1% and increased 6.8% year over year.
Equifax (EFX - Free Report) reported better-than-expected second-quarter 2024 results.
EFX’s adjusted earnings were $1.82 per share, beating the Zacks Consensus Estimate by 5.8% and increasing 6.4% from the year-ago quarter. Total revenues of $1.4 billion missed the consensus estimate by a slight margin but increased 8.6% from the year-ago quarter.