ManpowerGroup's (MAN) Q1 Earnings Miss Estimates, Down Y/Y
ManpowerGroupInc.’s MAN shares slipped 7.2% in yesterday’s trading session in response to the lower-than-expected first-quarter 2023 results reported before the bell.
The company’s guidance didn’t seem impressive too as the expected EPS range of $1.58-$1.68 for the second quarter of 2023 is way below the current Zacks Consensus Estimate of $1.78. Constant currency revenues are expected to decline 1-5% year over year.
First-quarter adjusted earnings of $1.61 per share lagged the consensus mark by 0.6% but matched our estimate. The bottom line declined 14.4% year over year, negatively impacted by restructuring costs and foreign currency fluctuations.
Revenues of $4.8 billion missed the consensus mark by 1.3% and our estimate by a slight margin. The top line decreased 7.6% year over year on a reported basis. Revenues decreased 2.2% on a constant-currency (cc) basis.
Experis declined 5% year over year and Talent Solutions declined 1%. Manpower brand decreased 1% year over year.
ManpowerGroup Inc. Price, Consensus and EPS Surprise
ManpowerGroup Inc. price-consensus-eps-surprise-chart | ManpowerGroup Inc. Quote
All Segments Decline on a Reported Basis
Revenues from America totaled $1.1 billion, down 9.7% year over year on a reported basis and 6.1% at cc. In the United States, revenues came in at $770 million, down 13.4% year over year. In the Other Americas subgroup, revenues of $360.2 million decreased slightly on a reported basis and 11.8% at cc.
Revenues from Southern Europe were down 5.7% on a reported basis and 1.4% at cc to $2.1 billion. Revenues from France came in at $1.17 billion, down 1.9% on a reported basis but up 2.5% at cc. Revenues from Italy amounted to $422.2 million, down 5.1% on a reported basis and 0.8% at cc. The Other Southern Europe sub-segment generated revenues of $476.4 million were down 14.4% on a reported basis and 10.3% at cc.
Northern Europe revenues moved down 11.6% on a reported basis and 3.9% at cc to $967.6 million. APME revenues totaled $605.9 million, down 2% on a reported basis but up 7.3% at cc.
Operating Profit Declines
The company incurred an operating profit of $117.9 million, down 15% year over year on a reported basis and 7.4% at cc. The operating profit margin of 2.5% decreased 20 basis points year over year.
Key Balance Sheet & Cash Flow Figures
ManpowerGroupexited the quarter with a cash and cash equivalents balance of $706.7 million compared with the prior quarter’s $639 million. Long-term debt at the end of the quarter was $972.4 million compared with the $959.9 million reported in the preceding quarter.
The company generated $124.6 million of cash from operating activities. It spent $30 million repurchasing common stock in the quarter.
Zacks Rank and Stocks to Consider
ManpowerGroup currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Earnings Snapshots
Omnicom OMC reported better-than-expected first-quarter 2023 results.
OMC’s earnings of $1.56 per share beat the Zacks Consensus Estimate by 13% and our estimates by 11.4%. EPS increased 12.2% year over year. Total revenues of $3.4 billion surpassed the consensus estimate by 2.3% and our estimate by 1.4%. The top line increased 1% year over year.
Equifax EFX also reported a beat on both counts in its first-quarter 2023 results.
EFX’s adjusted earnings came in at $1.43, beating the consensus mark by 4.4% but declining 35.6% from the year-ago figure. Total revenues of $1.3 billion surpassed the consensus estimate by 1.5% but decreased 4.5% year over year.
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