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ManpowerGroup's (MAN) Q1 Earnings Beat Estimates, Up Y/Y

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ManpowerGroup Inc. MAN reported impressive first-quarter 2022 results, with both earnings and revenues beating the Zacks Consensus Estimate.

Quarterly adjusted earnings of $1.88 per share beat the consensus mark by 20.5% and improved 69.4% year over year. The bottom line benefited from improvement in business mix and robust demand for higher margin offerings.

Revenues of $5.14 billion surpassed the consensus mark by 0.7% and inched up 4.5% year over year on a reported basis and 9.8% on a constant-currency (cc) basis. The top-line growth was driven by growth in higher-margin offerings and higher levels of permanent recruitment activity. Experis and Talent Solutions grew a respective 31% and 10% on a reported basis, and 15% and 13% on an organic constant currency basis (cc). Manpower declined 2% on a reported basis but was up 5% at organic cc.

Over the past year, the ManpowerGroup stock has declined 18.6%, against 9% growth of the industry it belongs to.

ManpowerGroup Inc. Price

ManpowerGroup Inc. Price
ManpowerGroup Inc. Price

ManpowerGroup Inc. price | ManpowerGroup Inc. Quote

Segmental Revenues

Revenues from America totaled $1.25 billion, up 24.8% year over year on a reported basis and 25.7% at cc. In the United States, revenues came in at $889.4 million, up 46.1% year over year. In the Other Americas subgroup, revenues of $361.8 million declined 8.2% on a reported basis and 5.9% at cc.

Revenues from Southern Europe were up 1.6% on a reported basis and 8.4% at cc to $2.19 billion. Revenues from France came in at $1.19 billion, up 0.3% on a reported basis and 7.7% at cc. Revenues from Italy amounted to $445 million, up 10.5% on a reported basis and 18.6% at cc. The Other Southern Europe sub segment generated revenues of $556.5 million, down 2.1% on a reported basis but up 2.7% at cc.

Northern Europe revenues moved down 3.5% on a reported basis but were up 2% at cc to $1.09 billion. APME revenues totaled $618.2 million, down 1.5% on a reported basis and 6% at cc.

Operating Performance

The company incurred operating profit of $138.7 million, up 40.9% year over year on a reported basis and 49.3% at cc. Operating profit margin of 2.7% increased 70 basis points year over year.

Balance Sheet and Cash Flow

ManpowerGroup exited the quarter with cash and cash equivalents balance of $777.3 million compared with the prior quarter’s level of $847.8 million. Long-term debt at the end of the quarter was $551.3 million compared with $565.7 million reported in the preceding quarter.

The company generated $70.6 million of cash from operating activities while Capex was $19.4 million in the quarter. It paid $59.9 million of common stock in the quarter.

Q2 Outlook

ManpowerGroup expects second-quarter 2022 earnings per share in the range of $2.31-$2.39, the midpoint ($2.35) of which is above the current Zacks Consensus Estimate of $2.32 per share.

Zacks Rank and Stocks to Consider

Manpower Group currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Zacks Business Services sector that investors can consider are Cross Country Healthcare, Inc. CCRN and FactSet Research Systems Inc. FDS.

Cross Country Healthcare has an expected long-term earnings per share (three to five years) growth rate of 6.6%. CCRN has a trailing four-quarter earnings surprise of 41.5%, on average.

Cross Country Healthcare’s shares have surged 59.6% in the past year. CCRN sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

FactSet has an expected earnings growth rate of 16.1% for the current year. FDS has a trailing four-quarter earnings surprise of 6.1%, on average.

FactSet shares have surged 33.1% in the past year. FDS has a long-term earnings growth of 10%. FDS carries a Zacks Rank #2 (Buy).


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