Yahoo Finance ManpowerGroup (MAN) Gains on Acquisitions Amid Rising Expenses
ManpowerGroup MAN is focusing on boosting productivity and efficiency using technology. Acquisitions will be beneficial for its top-line growth. However, a rise in expenses might affect its bottom line.
MAN reported mixed first-quarter 2024 results. 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 the 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 basis.
ManpowerGroup Inc. Revenue (TTM)
ManpowerGroup Inc. revenue-ttm | ManpowerGroup Inc. Quote
How is MAN Doing?
ManpowerGroup is executing strong pricing and cost control. It is making significant investments in technology to boost productivity and efficiency. The company has implemented front office systems, cloud-based and mobile applications, and made improvements in the infrastructure of its global technology across different markets. MAN is also inclined toward the digitalization of its workforce solutions.
The company’s acquisitionstrategy will continue to benefit its revenue generation. It has acquired and invested in companies globally. Tingari was acquired in 2022, which supported ManpowerGroup's aim to achieve full employment in France. In 2021, Ettain Group was acquired, which accelerated the company’s diversifying strategy of its business mix into higher growth and value services.
ManpowerGroup's current ratio (a measure of liquidity) at the end of first-quarter 2024 was pegged at 1.17, higher than the 1.16 reported in the preceding quarter. A current ratio of more than 1often indicates that the company will easily pay off its short-term obligations.
MAN has returned $179.8 million, $270 million and $210 million through share repurchases and made dividend payments of $144.3 million, $139.9 million and $136.6 million in 2023, 2022 and 2021, respectively. These initiatives not only instill investors' confidence but also positively impact the bottom line.
Investments in restructuring and digital initiatives have shot up the company’s expenses, which has the potential to deteriorate ManpowerGroup's bottom line. In 2023, the company's selling, general, and administrative expenses rose 3.7% year over year.
ManpowerGroup operates in a highly competitive employment services industry. Its competitors have the marketing and financial resources to position them well in this industry. Competition as such exerts pricing pressure on the company. Also, it can raise the customer interest in taking advantage of in-house resources rather than engaging a third party.
Zacks Rank & Stocks to Consider
MAN currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Business Services sector are Accolade ACCD and Fiserv FI.
Accolade currently carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ACCD has a long-term earnings growth expectation of 14.2%. It delivered a trailing four-quarter earnings surprise of 22.6%, on average.
Fiserv has a Zacks Rank of 2 at present. It has a long-term earnings growth expectation of 14.3%.
FI delivered a trailing four-quarter earnings surprise of 2.3%, on average.
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ManpowerGroup Inc. (MAN): Free Stock Analysis Report
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