ManpowerGroup Stock Has Dropped 4% Since Q4 Earnings Beat

Zacks02-04

ManpowerGroup, Inc. MAN reported mixed fourth-quarter 2024 results. Earnings beat the Zacks Consensus Estimate, but revenues missed the same. The stock has declined 4% since the earnings release on Jan. 30, as the company’s guidance was weak.

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Management guided EPS in the range of 47 cents-57 cents, whose midpoint of 52 cents is below the current Zacks Consensus Estimate of 71 cents. The company’s guided range includes an estimated unfavorable currency impact of 6 cents and a 36% effective tax rate. Revenues are expected to be down 9%-13% year over year.

Quarterly adjusted EPS came in at $1.02, which surpassed the Zacks Consensus Estimate by 3% and increased 1.5% year over year. Revenues of $4.4 billion missed the consensus mark by a slight margin and decreased 5% from the year-ago quarter.

ManpowerGroup Inc. Price, Consensus and EPS Surprise

ManpowerGroup Inc. price-consensus-eps-surprise-chart | ManpowerGroup Inc. Quote

MAN: Other Quarterly Details

Revenues from America of $1.1 billion were above our expectations but tumbled 0.1% year over year on a reported basis and increased 7.2% at cc. In the United States, revenues reached $691.8 million, surpassing our estimate of $658.3 million and rose 1% year over year. In the Other Americas subgroup, revenues of $381.8 million beat our projection of $367.8 million. These revenues declined 2% on a reported basis but increased 18.1% at cc.

Revenues from Southern Europe of $2 billion were below our projection of $2.1 billion, declining 3.2% on a reported basis and 2.5% at cc. Revenues from France were $1.1 billion, below our expectations. These revenues were down 6.2% on a reported basis and 5.5% at cc. Revenues from Italy amounted to $418.7 million, surpassing our estimate of $424.1 million, which increased 1% on a reported basis and 1.1% at cc. The Other Southern Europe sub-segment generated revenues of $490.2 million, which outshined our expectations of $480.9 million. They were up 0.7% year over year on a reported basis and 1.1% at cc.

Northern Europe revenues declined 15.9% on a reported basis and 16.4% at cc to $768.4 million, lagging our estimate of $813.9 million. APME revenues totaled $522 million, missing our estimate of $530.4, down 5.5% on a reported basis and down 4% at cc.

MAN’s Operating Performance

The company registered an operating profit of $68.2 million, up 272.6% year over year on a reported basis and 280.2% at cc. The operating profit margin was 1.5%.

Key Balance Sheet & Cash Flow Figures of MAN

ManpowerGroup exited the quarter with a cash and cash equivalent balance of $509.4 million compared with $581.3 million in the fourth quarter of 2023. Long-term debt at the end of the quarter was $929.4 million compared with $990.5 million in the preceding year’s December-end quarter.

The company generated $195.9 million of cash from operating activities. Capital expenditures were $51.1 million. It spent $140 million on repurchasing common stock in the quarter.

The company currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Snapshot

Broadridge Financial Solutions, Inc. BR reported impressive second-quarter fiscal 2025 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate.

BR’s adjusted earnings of $1.6 per share outpaced the consensus mark by 12.2% and increased 69.6% from the year-ago quarter. Total revenues of $1.6 billion surpassed the consensus mark by 3% and rose 12.8% year over year.

Automatic Data Processing, Inc. ADP reported robust second-quarter fiscal 2025 results, wherein earnings and revenues beat the Zacks Consensus Estimate.

ADP’s earnings per share of $2.4 beat the consensus estimate by 3.5% and increased 10.3% from the year-ago quarter. Total revenues of $5 billion surpassed the consensus estimate by 1.6% and grew 8.2% on a year-over-year basis.

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