Core Viewpoint - The investment strategy focuses on long-term investments while also utilizing short-term shorts to identify alpha opportunities through bottom-up analysis of individual companies' fundamentals [1] Group 1: Investment Strategy - The approach emphasizes medium to long-term investment duration [1] - The goal is to identify companies with strong fundamentals, sustainable competitive advantages, and growth potential [1]

Core Viewpoint - The investment strategy focuses on long-term investments while also utilizing short-term shorts to identify alpha opportunities through bottom-up analysis of individual companies' fundamentals [1] Group 1: Investment Strategy - The approach emphasizes medium to long-term investment duration [1] - The goal is to identify companies with strong fundamentals, sustainable competitive advantages, and growth potential [1]

Core Insights - The article emphasizes the importance of enabling Javascript and cookies in browsers to prevent access issues [1] Group 1 - The article suggests that users may face blocks if ad-blockers are enabled, indicating a need for users to disable them for proper access [1]

Core Insights - ManpowerGroup reported third-quarter earnings of 83 cents per share, exceeding the analyst consensus estimate of 81 cents per share, and quarterly sales of $4.634 billion, surpassing the estimate of $4.600 billion [1] - The company anticipates fourth-quarter GAAP earnings between 78 cents and 88 cents per share, compared to market estimates of 78 cents per share [1] Group 1: Financial Performance - The third-quarter earnings of 83 cents per share marked a positive deviation from the expected 81 cents per share [1] - Quarterly sales reached $4.634 billion, exceeding the forecast of $4.600 billion [1] - The company projects fourth-quarter earnings in the range of 78 to 88 cents per share, aligning with market expectations [1] Group 2: Management Commentary - Jonas Prising, Chair & CEO, highlighted a return to growth after 11 consecutive quarters of revenue declines, attributing this to stabilized demand in North America and Europe [2] - The company is focused on increasing market share and reducing structural costs to enhance efficiency [2] - Prising expressed confidence in delivering long-term value to stakeholders [2] Group 3: Market Reaction and Analyst Ratings - Following the earnings announcement, ManpowerGroup shares fell by 5.1%, trading at $33.72 [2] - Barclays analyst Manav Patnaik maintained an Equal-Weight rating and reduced the price target from $50 to $42 [5] - UBS analyst Joshua Chan maintained a Neutral rating and lowered the price target from $40 to $39 [5]

Core Insights - ManpowerGroup reported third-quarter earnings of 83 cents per share, exceeding the analyst consensus estimate of 81 cents per share, and quarterly sales of $4.634 billion, surpassing the estimate of $4.600 billion [1] - The company anticipates fourth-quarter GAAP earnings between 78 cents and 88 cents per share, compared to market estimates of 78 cents per share [1] Financial Performance - The third-quarter earnings of 83 cents per share marked a positive turnaround after 11 consecutive quarters of organic constant currency revenue declines [2] - Quarterly sales reached $4.634 billion, indicating a recovery in demand, particularly in North America and Europe [1][2] Management Commentary - Jonas Prising, Chair & CEO, highlighted the stabilization of demand as a key factor in revenue improvement and emphasized the focus on increasing market share and reducing structural costs [2] - The company expressed confidence in delivering long-term value to stakeholders [2] Market Reaction - Following the earnings announcement, ManpowerGroup shares fell by 5.1%, trading at $33.72 [2] Analyst Ratings and Price Targets - Barclays analyst Manav Patnaik maintained an Equal-Weight rating and reduced the price target from $50 to $42 [5] - UBS analyst Joshua Chan maintained a Neutral rating and lowered the price target from $40 to $39 [5]

Core Insights - ManpowerGroup (NYSE: MAN) is a global leader in workforce solutions, providing staffing and recruitment services across various industries, with operations in North America, Europe, Latin America, and Asia Pacific [1] - The company reported an earnings per share (EPS) of $0.38, which was below the estimated $0.82, primarily due to restructuring costs and non-cash currency translation losses in Argentina [2][6] - Revenue for the company was approximately $4.63 billion, slightly exceeding the estimated $4.62 billion, representing a 2.3% increase from the previous year [3][6] Financial Performance - The adjusted EPS, excluding restructuring costs and currency losses, was $0.83, surpassing the Zacks Consensus Estimate of $0.82 [2] - Net earnings for the quarter were $18 million, a decrease from $22.8 million a year ago [3] - The company's gross profit margin was 16.6%, affected by lower permanent recruitment activity and a shift towards enterprise clients [5] Valuation Metrics - The price-to-sales ratio of 0.09 and enterprise value to sales ratio of 0.17 suggest that the stock may be undervalued relative to its sales [4] - The debt-to-equity ratio of 0.81 indicates moderate debt levels [4] - The enterprise value to operating cash flow ratio is 9.78, reflecting the company's ability to cover its enterprise value with operating cash flow [5] Liquidity Position - The current ratio of 0.99 indicates that the company has nearly enough current assets to cover its liabilities [5]

Core Insights - The company has experienced a modest improvement in win rates and secured new enterprise programs in sectors like financial services and life sciences, contributing to margin improvement and future growth as client demand recovers [1] - After eleven consecutive quarters of organic constant currency revenue declines, the company returned to growth in the third quarter, driven by stabilization of demand in North America and Europe [2][4] - The ManpowerGroup Employment Outlook Survey indicates a steady hiring outlook, with 45% of employers planning to maintain current workforce levels, the highest since early 2022 [3] Financial Performance - Reported revenue for the quarter was $4.6 billion, down 2% year-over-year in constant currency, while system-wide revenue was $4.9 billion [5][10] - Reported EBITDA was $74 million, with an adjusted EBITDA of $96 million, representing a 22% decrease in constant currency year-over-year [5][11] - Earnings per diluted share were $0.38 on a reported basis and $0.83 on an adjusted basis, with adjusted earnings per share decreasing by 39% year-over-year in constant currency [5][12] Market Trends - Gradual signs of stabilization in hiring are observed, with employers adapting to economic uncertainty and geopolitical complexities [4][6] - The company is seeing strong momentum in Latin America and APME, while Europe and North America show softer trends [4][7] - The demand in Europe and North America is holding steady, with an expanding enterprise pipeline concentrated among global enterprise clients [7] Business Segment Performance - The Manpower brand reported a 3% growth in organic constant currency, while Experis and Talent Solutions brands declined by 7% and 8% respectively [13] - The Americas segment revenue increased by 6% year-over-year on a constant currency basis, while Southern Europe revenue decreased by 1% [18][21] - The Asia Pacific Middle East segment saw an 8% increase in organic constant currency revenue, with Japan's revenue growing by 6% [25] Cost Management and Efficiency - The company is focused on cost containment and driving efficiencies, with adjusted SG&A expenses down 2% on a constant currency basis [16][17] - Capital expenditures for the quarter were $15 million, and free cash flow was $45 million, reflecting a positive trend despite previous declines [26][27] - The company is advancing digitization and standardization initiatives to streamline operations and improve efficiency [31][32] Future Outlook - The company forecasts ongoing stability in most markets, with earnings per share for the fourth quarter expected to be in the range of $0.78 to $0.88 [29] - The guidance includes a favorable foreign currency impact and anticipates a flat revenue trend at the midpoint [30] - Employers are becoming more resilient to policy fluctuations, with improved visibility for planning into 2026 [41]

Core Insights - ManpowerGroup reported quarterly earnings of $0.83 per share, exceeding the Zacks Consensus Estimate of $0.82 per share, but down from $1.29 per share a year ago, indicating an earnings surprise of +1.22% [1] - The company generated revenues of $4.63 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.64% and showing an increase from $4.53 billion year-over-year [2] - Manpower has outperformed consensus EPS estimates three times in the last four quarters and has also topped revenue estimates three times during the same period [2] Future Outlook - The immediate price movement of Manpower's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.78 on revenues of $4.52 billion, while the estimate for the current fiscal year is $2.82 on revenues of $17.74 billion [7] - The estimate revisions trend for Manpower was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell), suggesting expected underperformance in the near future [6] Industry Context - The Staffing Firms industry, to which Manpower belongs, is currently ranked in the bottom 17% of over 250 Zacks industries, indicating potential challenges ahead [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact Manpower's stock performance [5]

Financial Data and Key Metrics Changes - Reported revenue for the quarter was $4.6 billion, down 2% year-over-year in constant currency, while system-wide revenue was $4.9 billion [7][11] - Reported EBITDA for the quarter was $74 million, with adjusted EBITDA at $96 million, representing a decrease of 22% in constant currency year-over-year [7][8] - Adjusted earnings per share decreased by 39% year-over-year in constant currency, with reported EPS at $0.38 and adjusted EPS at $0.83 [8][12] Business Line Data and Key Metrics Changes - The Manpower brand experienced a 3% growth year-over-year on an organic constant currency basis, while Experis declined by 7% and Talent Solutions declined by 8% [14] - Gross profit margin for the quarter was 16.6%, with staffing margin contributing a 40 basis point reduction due to a shift towards enterprise accounts [14][16] - The consolidated gross profit decreased by 4% on an organic constant currency basis year-over-year, with Manpower brand reporting flat gross profit [15] Market Data and Key Metrics Changes - Revenue in the Americas segment was $1.1 billion, representing a 6% year-over-year increase on a constant currency basis [17] - Southern Europe revenue was $2.2 billion, reflecting a 1% decrease in organic constant currency [20] - The Asia-Pacific Middle East segment saw revenues of $521 million, representing an 8% increase in organic constant currency [23] Company Strategy and Development Direction - The company is focused on digitization and standardization across operations, with significant progress in global business services initiatives [28][29] - The implementation of AI, particularly the Sophie AI platform, is expected to enhance operational efficiency and client outcomes [30][56] - The company aims to balance cost containment with strategic investments to strengthen capabilities and expand margins [9][29] Management's Comments on Operating Environment and Future Outlook - Management noted a cautious hiring environment with stabilization signs, particularly in North America and Europe, despite geopolitical tensions [4][9] - The outlook for the fourth quarter anticipates ongoing stability in most markets, with EPS guidance in the range of $0.78 - $0.88 [26] - There is cautious optimism for improved economic conditions in 2026, particularly in Europe and North America [46] Other Important Information - Free cash flow for the quarter was $45 million, down from $67 million in the prior year, with capital expenditures at $15 million [24][25] - The company ended the quarter with cash of $275 million and total debt of $1.2 billion, reflecting an improvement in net debt [25] Q&A Session Summary Question: When business confidence improves, would there be an early cycle pickup in flexible staffing volumes? - Management indicated that the current labor market is "frozen," with little hiring or workforce reductions, but there are signs of stabilization and potential growth if employer confidence returns [33][34] Question: Can you discuss the trends seen in the quarter and any volatility due to economic conditions? - Management noted improvements in France and Italy, with stable performance in the U.S., although some volatility was observed due to previous large RPO volumes [38][40] Question: Are there any price pressures or mix issues impacting gross profit? - Management confirmed that the primary driver of staffing margin pressure is the mix shift towards enterprise clients, with no significant pricing changes observed [42][43] Question: How is political turmoil in France impacting business sentiment? - Management acknowledged that while political uncertainty is not helpful, clients are navigating the environment pragmatically and focusing on talent investments [71][73] Question: What are the drivers of blue-collar staffing outperforming white-collar staffing? - Management attributed the outperformance of the Manpower brand to improving PMI and employer resilience, while noting that the Experis brand is impacted by slower traditional IT project investments [79][81]

Financial Data and Key Metrics Changes - Reported revenue for the quarter was $4.6 billion, down 2% year over year in constant currency, while system-wide revenue was $4.9 billion [7][11] - Reported EBITDA for the quarter was $74 million, with adjusted EBITDA at $96 million, representing a decrease of 22% in constant currency year over year [8][11] - Adjusted earnings per share decreased by 39% year over year in constant currency, with reported EPS at $0.38 and adjusted EPS at $0.83 [8][12] Business Line Data and Key Metrics Changes - The Manpower brand experienced a 3% growth in organic constant currency, while Experis declined by 7% and Talent Solutions declined by 8% [13] - Gross profit margin for the quarter was 16.6%, with staffing margin contributing to a 40 basis point reduction due to a shift towards enterprise accounts [14][15] - The consolidated gross profit decreased by 4% on an organic constant currency basis year over year, with Manpower brand reporting flat gross profit [15] Market Data and Key Metrics Changes - Revenue in the Americas segment was $1.1 billion, representing a 6% year-over-year increase on a constant currency basis [17] - Southern Europe revenue was $2.2 billion, reflecting a 1% decrease in organic constant currency [19] - The Asia-Pacific Middle East segment saw revenues of $521 million, representing an 8% increase in organic constant currency [23] Company Strategy and Development Direction - The company is focused on digitization and standardization across operations to improve efficiency and reduce costs [28][30] - The implementation of AI, particularly the Sophy AI platform, is expected to enhance client outcomes and drive revenue growth [30][31] - The company aims to balance cost containment with strategic investments to strengthen capabilities and expand margins [9][30] Management's Comments on Operating Environment and Future Outlook - Management noted a cautious hiring environment with geopolitical tensions and economic uncertainty impacting labor markets [4][5] - There are signs of stabilization in demand, particularly in North America and Europe, with expectations for gradual improvement [9][46] - The outlook for 2026 is cautiously optimistic, with expectations for improved economic conditions in Europe and North America [46] Other Important Information - Free cash flow for the quarter was $45 million, down from $67 million in the prior year, with capital expenditures at $15 million [24][25] - The company ended the quarter with cash of $275 million and total debt of $1.2 billion, reflecting an improvement in net debt [25] Q&A Session Summary Question: When business confidence improves, would there be an early cycle pickup in flexible staffing volumes? - Management indicated that if employer confidence returns, it could lead to better growth in the Manpower brand and other segments [34][36] Question: Can you discuss the trends seen in the quarter and any volatility due to economic conditions? - Management noted improvements in France and Italy, with stable performance in the U.S., although some volatility was observed due to prior large RPO volumes [40][42] Question: Are there any price pressures or mix issues impacting gross profit? - Management confirmed that the primary driver of margin pressure is the mix shift towards enterprise clients, with no significant pricing changes observed [43][44] Question: How is political turmoil in France impacting business sentiment? - Management acknowledged that while political uncertainty is not helpful, companies are navigating the environment pragmatically and focusing on talent investments [71][73] Question: What are the drivers of blue-collar staffing outperforming white-collar staffing? - Management attributed the outperformance of the Manpower brand to improving PMI and employer resilience, while noting slower investment in traditional IT projects affecting Experis [80][82]