Core Insights - Jefferson Wells has been designated as a Cybersecurity Maturity Model Certification (CMMC) Registered Practitioner Organization (RPO), allowing the company to assist defense contractors in meeting new cybersecurity requirements [1][2][3] - The updated CMMC framework by the Department of Defense (DoD) mandates defense contractors and subcontractors to adhere to strict standards for safeguarding Controlled Unclassified Information (CUI) [2][3] - Jefferson Wells emphasizes that CMMC compliance is crucial for national security and business integrity, offering a client-first approach to help organizations achieve certification efficiently [3] Company Offerings - As an RPO, Jefferson Wells provides a range of compliance solutions, including initial cybersecurity assessments, custom implementation strategies, audit preparation and guidance, and ongoing compliance monitoring [7] - The company will host a complimentary webinar titled "Cybersecurity Regulations & Standards: Raising the Bar" on February 25, 2025, to educate organizations on the new requirements and strategies for compliance [3][4] Company Background - Jefferson Wells is a professional services firm that specializes in Finance & Accounting, Internal Audit, Risk & Compliance, and Tax, and is part of the ManpowerGroup family of brands [5] - ManpowerGroup, the parent company, is a leading global workforce solutions provider, recognized for its innovative talent management solutions across various industries [6]

Core Insights - ManpowerGroup, Inc. reported mixed fourth-quarter 2024 results with earnings exceeding estimates but revenues falling short, leading to a 4% decline in stock price post-earnings release due to weak guidance [1][2] Financial Performance - Adjusted EPS for the quarter was $1.02, surpassing the Zacks Consensus Estimate by 3% and reflecting a 1.5% year-over-year increase [3] - Total revenues were $4.4 billion, missing consensus estimates slightly and decreasing by 5% compared to the previous year [3] Revenue Breakdown - Revenues from America totaled $1.1 billion, slightly down by 0.1% year-over-year but up 7.2% at constant currency [4] - U.S. revenues reached $691.8 million, exceeding estimates and rising 1% year-over-year [4] - Southern Europe revenues were $2 billion, below projections, declining 3.2% on a reported basis and 2.5% at constant currency [5] - Northern Europe revenues fell 15.9% on a reported basis to $768.4 million, missing estimates [6] Operating Performance - The company reported an operating profit of $68.2 million, a significant increase of 272.6% year-over-year, with an operating profit margin of 1.5% [7] Balance Sheet and Cash Flow - Cash and cash equivalents at the end of the quarter were $509.4 million, down from $581.3 million a year earlier [8] - Long-term debt decreased to $929.4 million from $990.5 million year-over-year [8] - The company generated $195.9 million from operating activities and spent $140 million on stock repurchases during the quarter [8]

Group 1 - The previous investment stance on ManpowerGroup (NYSE: MAN) was a sell rating due to a lack of evidence for recovery amid an uncertain macro environment [1] - The investment strategy focuses on long-term investments while incorporating short-term shorts to identify alpha opportunities [1] - The approach is centered on bottom-up analysis, assessing the fundamental strengths and weaknesses of individual companies [1] Group 2 - The investment duration is medium to long-term, aiming to identify companies with solid fundamentals, sustainable competitive advantages, and growth potential [1]

Group 1 - ManpowerGroup reported financial results for the final quarter of the 2024 fiscal year, indicating revenue and earnings per share performance [1] - The date of January 30th was significant for shareholders of ManpowerGroup due to the financial results announcement [1] Group 2 - Crude Value Insights provides an investing service focused on oil and natural gas, emphasizing cash flow and companies with growth potential [1] - The service includes a 50+ stock model account and in-depth cash flow analyses of exploration and production firms [2] - Subscribers can engage in live chat discussions about the sector [2]

Financial Data and Key Metrics Changes - In Q4 2024, revenue was $4.4 billion, down 3% year-over-year in constant currency [16] - Reported EBITA for the quarter was $76 million, while adjusted EBITA was $94 million, representing a decrease of 12% in constant currency year-over-year [17][21] - Adjusted earnings per share decreased 27% year-over-year in constant currency, with reported EPS at $0.47 and adjusted EPS at $1.02 [17][19] Business Line Data and Key Metrics Changes - On an organic constant currency basis, the Manpower brand declined 1%, Experis declined 6%, and Talent Solutions increased by 6% [23] - Talent Solutions' RPO business experienced a year-over-year revenue increase, while MSP recorded strong double-digit revenue growth [23][24] - Right Management saw a year-over-year revenue decline as outplacement activity began to slow [23] Market Data and Key Metrics Changes - Revenue in the Americas segment was $1.1 billion, representing a 7% increase compared to the prior year period on a constant currency basis [29] - Southern Europe revenue was $2 billion, representing a 3% decrease in constant currency [34] - Northern Europe revenue declined 16% in constant currency, with the U.K. market experiencing a 22% decrease [37][38] Company Strategy and Development Direction - The company aims to exploit opportunities in AI by providing re-skilling and upskilling solutions to clients and candidates [12][52] - The DDI Strategy focuses on Diversification, Digitization, and Innovation to strengthen EBITA and grow revenues [51][52] - The company is adjusting to current market conditions while maintaining investments in technology and digitization [54] Management's Comments on Operating Environment and Future Outlook - Management noted improved sentiment regarding the U.S. economic outlook but expressed concerns over European economic growth [9][10] - The company anticipates continued challenges in Europe, particularly in Northern Europe, while seeing some encouraging performance in the U.S. [15][46] - The first quarter of 2025 is expected to be challenging, with revenue guidance indicating a decrease of 5% to 9% [48][49] Other Important Information - Free cash flow for the full year 2024 was $258 million, with a strong finish in Q4 at $236 million [43] - The company repurchased 552,000 shares for $34 million during the fourth quarter [44] - The balance sheet ended with cash of $509 million and total debt of $953 million [45] Q&A Session Summary Question: Can you explain the bridge between the adjusted EPS and the first quarter guidance? - Management explained that the sequential drop in EPS is driven by EBITDA margin changes and revenue impacts from net dispositions and fewer working days [57][60][64] Question: What actions will the company take if macro conditions remain poor? - Management indicated that they have already taken actions in Northern Europe, reducing FTEs in line with revenue trends, while maintaining capacity for future growth [70][72] Question: Are there any use cases for GenAI and competitive threats? - Management noted that many companies are investing in AI but have yet to see meaningful impact at scale, emphasizing the importance of human capabilities alongside technology [76][78] Question: Is there an increase in orders in the U.S. post-election? - Management observed a change in tone and optimism among employers but noted that it has not yet translated into increased demand [86][88] Question: What is the outlook for Europe, particularly France? - Management highlighted the contrasting performance between Northern and Southern Europe, with Northern Europe facing significant challenges [92][94][96]

Core Insights - ManpowerGroup reported $4.4 billion in revenue for Q4 2024, a 5% year-over-year decline, with EPS of $1.02 compared to $1.45 a year ago, indicating a decrease in profitability [1] - The revenue fell short of the Zacks Consensus Estimate of $4.42 billion by 0.52%, while the EPS exceeded the consensus estimate of $0.99 by 3.03% [1] Revenue Breakdown - Services revenue from the Americas was $1.07 billion, surpassing the average estimate of $1.04 billion, with a slight year-over-year decline of 0.1% [4] - Services revenue from APME reached $768.40 million, significantly exceeding the estimated $532.03 million, reflecting a 39.2% increase year-over-year [4] - Southern Europe generated $2.04 billion in revenue, slightly below the estimated $2.08 billion, marking a 3.2% decline year-over-year [4] - Northern Europe reported $768.40 million, falling short of the $826.74 million estimate, representing a 15.9% year-over-year decrease [4] - Other Southern Europe generated $490.20 million, close to the estimated $492.76 million, with a year-over-year increase of 0.7% [4] - France's revenue was $1.13 billion, below the estimated $1.16 billion, showing a 6.2% decline year-over-year [4] - The United States contributed $691.80 million, exceeding the estimate of $658.77 million, with a year-over-year decline of 1.5% [4] - Other Americas reported $381.80 million, slightly above the estimate of $377.62 million, reflecting a 2.6% year-over-year increase [4] - Italy's revenue was $418.70 million, close to the estimated $424.71 million, with a year-over-year increase of 0.9% [4] Profitability Metrics - Corporate expenses resulted in a loss of $32.50 million, better than the average estimate of a loss of $40.56 million, indicating improved cost management [4] Stock Performance - Manpower's shares have returned +4.6% over the past month, outperforming the Zacks S&P 500 composite's +1.2% change, although the stock currently holds a Zacks Rank 5 (Strong Sell), suggesting potential underperformance in the near term [3]

Group 1: Earnings Performance - ManpowerGroup reported quarterly earnings of $1.02 per share, exceeding the Zacks Consensus Estimate of $0.99 per share, but down from $1.45 per share a year ago, representing an earnings surprise of 3.03% [1] - The company posted revenues of $4.4 billion for the quarter ended December 2024, missing the Zacks Consensus Estimate by 0.52% and down from $4.63 billion year-over-year [2] - Over the last four quarters, Manpower has surpassed consensus EPS estimates four times, but has topped consensus revenue estimates only once [2] Group 2: Stock Performance and Outlook - Manpower shares have increased approximately 4.6% since the beginning of the year, outperforming the S&P 500's gain of 2.7% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to those expectations [4] - The current consensus EPS estimate for the upcoming quarter is $0.87 on revenues of $4.25 billion, and for the current fiscal year, it is $4.90 on revenues of $17.78 billion [7] Group 3: Industry Context - The staffing industry, represented by the Zacks Industry Rank, is currently in the bottom 24% of over 250 Zacks industries, indicating potential challenges for stocks in this sector [8] - Another company in the staffing industry, Kelly Services, is expected to report quarterly earnings of $0.44 per share, reflecting a year-over-year decline of 52.7%, with revenues projected at $1.15 billion, down 6.7% from the previous year [9]

Financial Performance - Net earnings for Q4 2024 were $22.5 million, or $0.47 per diluted share, compared to net losses of $84.5 million, or $1.73 per diluted share, in the prior year period [2]. - Full year 2024 revenues totaled $17.9 billion, a decrease of 6% compared to the prior year, or a decrease of 3% in constant currency [7]. - Net earnings increased by 63.5% to $145.1 million in 2024, compared to $88.8 million in 2023 [22]. - Net earnings per share (diluted) rose to $3.01 in 2024, a 70.6% increase from $1.76 in 2023 [22]. - Operating profit for 2024 was $306.0 million, reflecting a 19.6% increase from $255.8 million in 2023 [22]. Revenue and Profit Margins - Revenues for Q4 2024 were $4.4 billion, representing a 5% decrease from the prior year period, and a 3% decrease on a constant currency basis [5]. - Revenues from services for 2024 were $17,853.9 million, a decrease of 5.6% compared to $18,914.5 million in 2023 [22]. - The gross profit margin for Q4 2024 was 17.2%, with staffing margins remaining solid despite a slight decrease [5]. - Gross profit for 2024 was $3,086.8 million, down 8.1% from $3,358.0 million in 2023 [22]. Cash Flow and Investments - Cash provided by operating activities was $247 million, with free cash flow of $236 million for the quarter [4]. - Cash provided by operating activities was $309.2 million, a decrease from $348.2 million in the previous year, reflecting a decline of 11.5% [31]. - Cash used in investing activities totaled $68.2 million, slightly down from $74.1 million in 2023, indicating a reduction of 3.9% [31]. - Cash used in financing activities decreased to $282.4 million from $349.5 million, a reduction of 19.2% [31]. - The company reported a decrease in cash and cash equivalents to $509.4 million at the end of the period, down from $581.3 million at the beginning, a decline of 12.4% [31]. - Capital expenditures for the year were $51.1 million, compared to $78.2 million in 2023, showing a decrease of 34.6% [31]. Stock and Debt Management - The company repurchased $34 million of common stock during the quarter [5]. - The company repurchased $140.0 million in common stock, down from $179.8 million in the previous year, a decrease of 22.1% [31]. - Long-term debt decreased to $929.4 million in 2024 from $990.5 million in 2023 [29]. - Current liabilities were $4,437.1 million in 2024, down from $4,799.7 million in 2023 [29]. Regional Performance - Regional performance showed a challenging environment in Europe and North America, while Asia Pacific and Latin America experienced good demand [5]. Future Outlook - The company anticipates diluted earnings per share for Q1 2025 to be between $0.47 and $0.57, including an estimated unfavorable currency impact of 6 cents [7]. - Significant progress was made in global transformation initiatives during 2024, with expectations to continue this progress in 2025 [6]. Impairments and Provisions - The goodwill impairment charge for 2023 was $55.1 million related to the investment in the Netherlands [23]. - The provision for doubtful accounts increased to $9.0 million from $5.4 million, reflecting a rise of 66.7% [31]. - The company experienced a loss on sales of subsidiaries of $8.2 million, up from $1.3 million in the previous year, indicating a significant increase in losses [31]. Currency Impact - The impact of exchange rate changes on cash was a loss of $30.5 million, contrasting with a gain of $17.7 million in 2023 [31].

Financial Performance - ManpowerGroup reported net earnings of $0.47 per diluted share for Q4 2024, a significant recovery from a net loss of $1.73 per diluted share in Q4 2023, with net earnings of $22.5 million compared to net losses of $84.5 million a year earlier [1][4] - Revenues for Q4 2024 were $4.4 billion, reflecting a 5% decrease from the prior year period, and a 3% decrease on a constant currency basis [1][2][9] - For the full year 2024, net earnings were $145.1 million, or $3.01 per diluted share, compared to $88.8 million, or $1.76 per diluted share in 2023, with revenues totaling $17.9 billion, a 6% decrease compared to the previous year [4][19] Cost and Expenses - The fourth quarter included restructuring costs, pension settlements, and net losses from the sale of the Austria business, which collectively reduced earnings per share by $0.55 [2] - Selling and administrative expenses for Q4 2024 decreased by 19.2% compared to the previous year, contributing to an operating profit of $68.2 million, a significant improvement from a loss of $39.5 million in Q4 2023 [12][22] Regional Performance - North America and Europe faced challenging operating conditions, while Asia Pacific and Latin America experienced good demand [3][9] - In the Americas, revenues from services were $4.2 billion, a decrease of 4.3% compared to the previous year, with the United States showing a slight decline of 0.1% [21][22] Future Outlook - The company anticipates diluted earnings per share in Q1 2025 to be between $0.47 and $0.57, factoring in an estimated unfavorable currency impact of 6 cents [4] - ManpowerGroup aims to continue its global transformation initiatives and expects to make further progress in 2025 [3]

Core Insights - ManpowerGroup is participating in the World Economic Forum's Annual Meeting in Davos to address the impact of AI and the green transition on workforce skills and sentiment [1][3][5] - A significant portion of the workforce is optimistic about green initiatives, but there is skepticism regarding AI's benefits for career advancement and opportunities for upward mobility [1][5] Group 1: Workforce Sentiment and Trends - 70% of individuals feel positive about green initiatives transforming jobs, while only 53% believe AI will benefit their careers [1] - 25% of workers see opportunities for upward mobility in their current roles [1] - ManpowerGroup will release its "2025 Global Workforce Trends" report, highlighting 16 key trends influenced by workforce expansion, new working methods, digital transformation, and global changes [5] Group 2: Leadership and Discussions - Jonas Prising, ManpowerGroup Chair & CEO, emphasizes the need for targeted upskilling to unlock human potential and address workforce challenges [3] - A strategic session led by Prising will focus on developing practical solutions for companies and governments to adapt to the evolving job market [3] Group 3: Events and Engagements - ManpowerGroup will host a session titled "What Will Work Be Once AI Grows Up?" featuring industry leaders discussing the future of work in an AI-driven environment [4] - The event will be available for on-demand viewing, allowing broader access to insights shared during the discussion [4]