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ManpowerGroup (MAN) Q2 Earnings & Revenues Beat, Up Y/Y

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ManpowerGroup Inc.MAN reported better-than-expected second-quarter 2021 results, with earnings and revenues beating the Zacks Consensus Estimate.

Quarterly adjusted earnings of $2.02 per share beat the consensus mark by 68.2% and improved more than 100%. Revenues of $5.28 billion beat the consensus mark by 2%. The top line inched up 41% year over year on a reported basis and 31.3% on a constant-currency (cc) basis.

So far this year, the stock has gained 23.5% compared with 26.8% increase of the industry it belongs to.

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Segmental Revenues

Revenues from America totaled $1.04 million, up 24.8% year over year on a reported basis and 22.8% at cc. In the United States, revenues came in at $628.8 million, up 21.9% year over year. In the Other Americas subgroup, revenues of $415.5 million grew 29.6% on a reported basis and 24.3% at cc.

Revenues from Southern Europe were up 64.7% on a reported basis and 51% at cc to $2.42 billion. Revenues from France came in at $1.35 billion, up 83% on a reported basis and 67.3% at cc. Revenues from Italy amounted to $469.1 million, up 74.7% on a reported basis and 59.6% at cc. The Other Southern Europe sub segment generated revenues of $606.5 million, up 30.1% on a reported basis and 20.4% at cc.

Northern Europe revenues moved up 37.5% on a reported basis and 23.1% at cc to $1.19 billion.

APME revenues totaled $619.9 million, up 8.9% on a reported basis and 5.5% at cc.

Operating Performance

Gross profit in the quarter was $860.1 million, up 49.1% year over year on a reported basis and 0.5% at cc. Gross profit margin rose to 49.1% compared with 39.8% in the year-ago quarter.

The company incurred operating profit of $169.9 million against loss of $50 million in the year-ago quarter.

ManpowerGroup Inc. Price, Consensus and EPS Surprise

ManpowerGroup Inc. Price, Consensus and EPS Surprise
ManpowerGroup Inc. Price, Consensus and EPS Surprise

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

Balance Sheet and Cash Flow

ManpowerGroup, carrying a Zacks Rank #2 (Buy), exited the quarter with cash and cash equivalents balance of $1.46 billion compared with the prior quarter’s $1.52 billion. Long-term debt at the end of the quarter was $1.07 billion compared with $1.06 billion reported in the preceding quarter.

The company generated $54.5 million of cash from operating activities in the quarter, while Capex was $11.9 million.

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

Guidance

ManpowerGroup expects third-quarter 2021 earnings between $1.86 and $1.94 per share. The Zacks Consensus Estimate of $1.74 lies below the guidance.

Upcoming Releases

Investors interested in the broader Zacks Business Services sector are awaiting second-quarter 2021 earnings reports of key players like Fiserv FISV, Waste Management WM and IQVIA Holdings IQV, each of which is slated to report the same on Jul 27.


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