ManpowerGroup Inc (MAN) Q3 2023 Earnings: Revenue Declines Amid Challenging Operating Environment
ManpowerGroup Inc (NYSE:MAN) reported Q3 2023 revenues of $4.7 billion, a decrease of 3% from the prior year period.
Net earnings for the quarter were $30.3 million, compared to $111.3 million a year earlier.
The company repurchased $50 million of common stock during the quarter.
Despite the challenging operating environment in North America and Europe, the company reported strong free cash flow of $245 million.
ManpowerGroup Inc (NYSE:MAN) released its Q3 2023 earnings report on October 19, 2023. The company reported revenues of $4.7 billion, a decrease of 3% as reported and 5% in constant currency. The challenging operating environment in North America and Europe was cited as the primary cause for the revenue decline. Despite this, the company's staffing margins remained resilient, although permanent recruitment demand weakened.
Financial Highlights
ManpowerGroup Inc (NYSE:MAN) reported net earnings of $0.60 per diluted share for the three months ended September 30, 2023, compared to $2.13 per diluted share in the prior year period. Net earnings in the quarter were $30.3 million compared to $111.3 million a year earlier. The company also reported a gross profit margin of 17.6%.
The company took cost reduction and restructuring actions to align operations with the weaker market demand. During the quarter, ManpowerGroup Inc (NYSE:MAN) repurchased $50 million of common stock and reported a strong free cash flow of $245 million.
Company's Commentary
Jonas Prising, ManpowerGroup Chairman & CEO, said, Our third quarter results reflect the challenging operating environment for recruitment and resourcing in North America and Europe. We continued to see solid demand across Latin America and Asia Pacific Middle East. While the current operating environment is difficult for our industry, we are confident in our ability to adjust to the existing reality while being ready to pivot quickly when the situation improves. We executed various additional cost actions during the third quarter and our experienced management team continues to drive our key Diversification, Digitization and Innovation initiatives which are strengthening ManpowerGroup for the future.
Looking Ahead
For the fourth quarter, the company anticipates diluted earnings per share to be between $1.17 and $1.27, which includes an estimated unfavorable currency impact of 1 cent. This guidance excludes expected restructuring costs and any Argentina related impact of non-cash currency translation losses.
Despite the challenging operating environment, ManpowerGroup Inc (NYSE:MAN) remains resilient and continues to implement strategic initiatives to strengthen its position for the future.
This article first appeared on GuruFocus.
