ManpowerGroup (MAN) Stock Declines 3% on Q2 Earnings Miss
ManpowerGroup Inc.’s MAN shares dipped nearly 3% since its second-quarter 2023 earnings release on Jul 20, in response to the lower-than-expected results.
The company’s guidance didn’t seem impressive too as the expected EPS range of $1.32-$1.42 for the third quarter of 2023 is below the current Zacks Consensus Estimate of $1.46.
Second-quarter adjusted earnings of $1.58 per share lagged the consensus mark by 1.9% and declined 32.2% year over year, owing to restructuring costs and Argentina-related non-cash currency translation losses.
Revenues of $4.9 billion missed the consensus mark by 0.6% and decreased 4.3% year over year on a reported basis. Revenues decreased 3% on a constant-currency (cc) basis.
On an organic constant currency basis, Experis dropped 11% year over year and Talent Solutions declined 9%. Manpower brand decreased 1% year over year.
ManpowerGroup Inc. Price, Consensus and EPS Surprise
ManpowerGroup Inc. price-consensus-eps-surprise-chart | ManpowerGroup Inc. Quote
Segmental Revenues
Revenues from America totaled $1.1 billion, down 13% year over year on a reported basis and 9.3% at cc. In the United States, revenues came in at $736.7 million, down 18.5% year over year. In the Other Americas subgroup, revenues of $362 million increased 0.9% on a reported basis and 14% at cc.
Revenues from Southern Europe improved 1.2% on a reported basis but declined 0.9% at cc to $2.2 billion. Revenues from France came in at $1.3 billion, up 3.2% on a reported basis and 0.9% at cc. Revenues from Italy amounted to $457.8 million, up 0.8% on a reported basis but down 1.5% at cc. The Other Southern Europe sub-segment generated revenues of $490.9 million were down 3.5% on a reported basis and 4.7% at cc.
Northern Europe revenues declined 7.3% on a reported basis and 6.3% at cc to $952.5 million. APME revenues totaled $599.4 million, down 0.7% on a reported basis but up 4.2% at cc.
Operating Performance
The company incurred an operating profit of $107.6 million, down 40% year over year on a reported basis and 39.1% at cc. This compares to our expectation of an operating profit of $130.5 million, down 28.9% year over year on a reported basis.
The operating profit margin of 2.2% decreased 140 basis points year over year. This compares with our expectation of an operating profit margin of $2.7%, down 90 basis points year over year.
Key Balance Sheet & Cash Flow Figures
ManpowerGroup exited the quarter with a cash and cash equivalents balance of $407.6 million compared with the prior quarter’s $706.7 million. Long-term debt at the end of the quarter was $978.8 million compared with the $972.4 million reported in the preceding quarter.
The company used $155.8 million of cash from operating activities. It spent $49.9 million repurchasing common stock and $73.1 million paying dividends in the quarter.
Zacks Rank
ManpowerGroup currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Earnings Snapshots
Omnicom OMC reported mixed second-quarter 2023 results, wherein the company’s earnings surpassed the Zacks Consensus Estimate but revenues missed the same.
OMC’s earnings of $1.81 per share beat the consensus estimate by 0.6% and increased 7.7% year over year. Total revenues of $3.6 billion lagged the consensus estimate by 0.3% but increased 1.2% year over year.
Equifax EFX reported mixed second-quarter 2023 results, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same.
EFX’s adjusted earnings came in at $1.71 per share, beating the consensus mark by 2.4% but declining 18.2% from the year-ago figure. Total revenues of $1.32 billion missed the consensus estimate by 0.4% but matched the year-ago figure on a reported basis.
Interpublic’s IPG second-quarter 2023 earnings surpassed the Zacks Consensus Estimate while revenues missed the same.
IPG’s adjusted earnings came in at 74 cents per share, beating the Zacks Consensus Estimate by 23.3% but declining 17.5% on a year-over-year basis. Net revenues of $2.33 billion missed the consensus estimate by 2.9% and decreased 14.9% on a year-over-year basis. Total revenues of $2.67 billion decreased 2.6% year over year.
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