Yahoo Finance Manpower (MAN) Down 4.1% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for ManpowerGroup (MAN). Shares have lost about 4.1% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Manpower due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
ManpowerGroup Q4 Earnings Miss
ManpowerGroupInc. fourth-quarter 2022 earnings missed the Zacks Consensus Estimate but revenues met the same.
Quarterly adjusted earnings of $2.08 per share lagged the consensus mark by 2.8% and declined 5.5% year over year. The bottom line was negatively impacted by U.S. acquisition integration costs, restructuring costs and other special items.
Revenues of $4.8 billion decreased 10.7% year over year on a reported basis. Revenues decreased 1% on a constant-currency (cc) basis. Experis was flat year over year and Talent Solutions grew 7%. The Manpower brand decreased 1% year over year.
Segmental Revenues
Revenues from America totaled $1.18 billion, down 3% year over year on a reported basis but up slightly at cc. In the United States, revenues were $819.4 million, down 4.8% year over year. In the Other Americas sub-group, revenues of $362.6 million increased 1.3% on a reported basis and 13% at cc.
Revenues from Southern Europe were down 11.8% on a reported basis and 1.5% at cc to $2.1 billion. Revenues from France were $1.19 billion, down 9.4% on a reported basis but up 1.5% at cc. Revenues from Italy amounted to $412.5 million, down 11.7% on a reported basis and up 1.1% at cc. The Other Southern Europe sub-segment generated revenues of $493.8 million, down 11.8% on a reported basis and 1.5% at cc.
Northern Europe revenues moved down 17.5% on a reported basis and 5.4% at cc to $972.6 million. APME revenues totaled $578.5 million, down 7.1% on a reported basis but up 8.3% at cc.
Operating Performance
The company incurred an operating profit of $100.8 million, down 39.5% year over year on a reported basis and 28% at cc. The operating profit margin of 2.1% decreased 100 basis points year over year.
Balance Sheet and Cash Flow
ManpowerGroup exited the quarter with a cash and cash equivalent balance of $639 million compared with the prior quarter’s $527.5 million. Long-term debt at the end of the quarter was $26.6 million compared with the $883 million reported in the preceding quarter.
The company generated $134.1 million of cash from operating activities. Capex was $19.7 million in the quarter. It spent $25 million repurchasing common stock in the quarter.
Q4 Outlook
ManpowerGroup expects fourth-quarter 2022 earnings per share of $1.61-$1.71.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
The consensus estimate has shifted 9.21% due to these changes.
VGM Scores
Currently, Manpower has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Manpower has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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ManpowerGroup Inc. (MAN) : Free Stock Analysis Report
