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What's in Store for ManpowerGroup (MAN) in Q1 Earnings?

Zacks Equity Research

ManpowerGroup Inc. MAN is scheduled to report first-quarter 2020 results on Apr 21, before the opening bell.

So far this year, shares of the company have declined 37.7% compared with 38.8% fall of the industry it belongs to.

Here are the expectations in detail.

Top-Line Expectations

Challenging market environment in Europe is likely to have hurt ManpowerGroup’s first-quarter revenues. The Zacks Consensus Estimate is pegged at $4.33 billion, which indicates a decline of 14.1% year over year.

The Southern Europe segment’s revenues are likely to have declined due to weakness in France and Italy. The consensus mark is pegged at 2.1 billion, which suggests a 0.6% decline year over year. Weakness in Germany, Belgium and the Netherlands, might reflect on Northern Europe segment’s revenues. The consensus mark is pegged at 1.1 billion, which calls for year-over-year decline of 5%.

In the APME segment, sales are expected to have declined because of weakness in Australia. The consensus mark is pegged at $595 million, which suggests a year-over-year decline of 15%.

The Americas segment is likely to have performed well on the back of revenue growth in the Other Americas subgroup. The consensus mark is pegged at $1 billion, which indicates year-over-year increase of 2%.

In fourth-quarter 2019, revenues of $5.2 billion dropped 3.6% year over year.

Earnings Likely to Decline

Weak operating performance is likely to haveaffected ManpowerGroup’s earnings in the to-be-reported quarter. The Zacks Consensus Estimate for first-quarter earnings is pegged at 97 cents per share, which indicates a decline of 30.22% from the year-ago quarter’s reported figure.

In fourth-quarter 2019, adjusted earnings of $2.15 dropped 11.9% on a year-over-year basis.

ManpowerGroup Inc. Price and EPS Surprise

ManpowerGroup Inc. Price and EPS Surprise

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

What Our Model Says

The proven Zacks model does not conclusively predict an earnings beat for ManpowerGroup. This is because a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. However, that is not the case here as elaborated below. You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: ManpowerGroup has an Earnings ESP of -21.24% as the Most Accurate Estimate is pegged at 76 cents, while the Zacks Consensus Estimate is at 97 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: ManpowerGroup carries a Zacks Rank #5(Strong Sell), currently.

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 first-quarter 2020 earnings.

Verisk Analytics, Inc. VRSK has an Earnings ESP of +2.43% and currently holds a Zacks Rank of 2.

Spotify Technology S.A. SPOT has an Earnings ESP of +21.7% and currently carries a Zacks Rank of 3.

Advanced Disposal Services, Inc. ADSW has an Earnings ESP of +16.67% and currently has a Zacks Rank of 3.

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ManpowerGroup Inc. (MAN) : Free Stock Analysis Report
 
Verisk Analytics, Inc. (VRSK) : Free Stock Analysis Report
 
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