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ManpowerGroup (MAN) to Report Q2 Earnings: What's in Store?

Zacks Equity Research

ManpowerGroup Inc. MAN is scheduled to report second-quarter 2019 results on Jul 19, before the opening bell.

So far this year, we observe that shares of ManpowerGroup have rallied 39% compared with 14.7% rise of the industry it belongs to.

 

Here are the expectations in detail.

Top-Line Expectations

Challenging market environment in Europe is expected to weigh on the company’s top line. The Zacks Consensus Estimate for second-quarter 2019 revenues is pegged at $5.43 billion, indicating a decline of 4% year over year.  In first-quarter 2019, revenues of $5.04 billion decreased 8.6% year over year.

The company operates through five segments — Americas, Southern Europe, Northern Europe, Asia Pacific Middle East (APME) and Right Management.

The Americas segment is expected to witness revenue growth both in the United States and Other Americas subgroups. Revenue decline across France, Italy and Other Southern Europe may weigh on Southern Europe segment. Northern Europe segment is likely to be hurt by weakness in UK, Germany, Belgium and the Netherlands. While weakness in Australia and New Zealand should weigh on APME segment, Right Management business may be hurt by reduced outplacement activity

Earnings Likely to Decline Year Over Year

ManpowerGroup’s bottom line is expected to be hurt by unfavorable foreign currency movements, which are likely to be partially offset by better operational results, higher effective tax rate and lower weighted average share count. The Zacks Consensus Estimate for earnings per share in the to-be-reported quarter is pegged at $1.99, indicating year-over-year decline of 15.3%. The consensus estimate lies within the company guided range of $1.96-$2.04.

In first-quarter 2019, adjusted earnings of $1.39 decreased 19.2% on a year-over-year basis.

What Our Model Says

Please note that according to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Zacks Rank #4 (Sell) or 5 (Strong Sell) stocks are best avoided, especially when the company is seeing negative estimate revisions. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter .

ManpowerGroup has an Earnings ESP of 0.00% and a Zacks Rank #3, a combination that makes surprise prediction difficult.

ManpowerGroup Inc. Price and EPS Surprise

 

ManpowerGroup Inc. Price and EPS Surprise

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

Stocks to Consider

Here are a few stocks from the broader Zacks Business Services sector that investors may consider as our model shows that these have the right combination of elements to beat on second-quarter 2019 earnings:

S&P Global SPGI has an Earnings ESP of +0.94% and a Zacks Rank #2.  The company is slated to report results on Aug 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

IQVIA Holdings IQV has an Earnings ESP of +0.88% and a Zacks Rank #3. The company is slated to release results on Jul 24.

Fiserv FISV has an Earnings ESP of +0.57% and a Zacks Rank #3. The company is slated to report results on Jul 25.

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