Core Viewpoint - ManpowerGroup Inc. reported better-than-expected third-quarter 2024 results, with adjusted earnings and revenues surpassing consensus estimates, although both metrics showed year-over-year declines [1][2]. Financial Performance - Adjusted earnings per share were $1.3, slightly above consensus but down 6.5% year over year due to the run-off of the Proservia Germany business and currency translation losses related to Argentina [2]. - Revenues totaled $4.5 billion, exceeding consensus estimates but declining 3% year over year on a reported basis and 2% on a constant-currency basis [2]. - On an organic constant currency basis, Experis revenues fell 10% year over year, Talent Solutions declined 14%, and the Manpower brand decreased 3% year over year [2]. Segmental Revenues - Revenues from America were $1.1 billion, in line with expectations but down 5.5% year over year on a reported basis, with U.S. revenues at $697.4 million, a decline of 4.5% year over year [3]. - Southern Europe revenues were $2.1 billion, slightly declining on a reported basis and 1.3% at constant currency, with France at $1.2 billion (down 2.5% reported) and Italy at $419.1 million (up 1.3% reported) [4]. - Northern Europe revenues decreased 9.4% on a reported basis to $828.3 million, while APME revenues totaled $562.8 million, slightly down on a reported basis but up 1.6% at constant currency [4]. Operating Performance - The company reported an operating profit of $70.8 million, up 1.5% year over year on a reported basis, with an operating profit margin of 1.6%, slightly increasing year over year [5]. Key Balance Sheet & Cash Flow Figures - Cash and cash equivalents at the end of the quarter were $410.9 million, down from $468.9 million in the prior quarter, while long-term debt increased to $999.7 million from $961.7 million [6]. - The company generated $83.5 million from operating activities, with capital expenditures of $16.1 million and $29 million spent on stock repurchases during the quarter [6]. Q4 Outlook - For Q4, ManpowerGroup expects EPS in the range of $1.17-$1.27, with the midpoint of $1.22 lower than the current Zacks Consensus Estimate of $1.35 [7].

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Core Insights - ManpowerGroup reported disappointing Q3 '24 results, which negatively impacted investor sentiment [1] Financial Performance - The company’s Q3 '24 results did not meet investor expectations, indicating potential challenges ahead [1] Future Outlook - There are concerns regarding the company's direction moving forward based on the recent financial performance [1]

Financial Data and Key Metrics Changes - Revenue for Q3 2024 was $4.5 billion, down 2% year-over-year in constant currency [8] - Reported EBITA was $79 million, while adjusted EBITA was $117 million, representing a 2% increase in constant currency year-over-year [8][10] - Earnings per diluted share was $0.47 on a reported basis, while adjusted earnings per diluted share was $1.29, a decrease of 8% year-over-year in constant currency [8][10] Business Line Data and Key Metrics Changes - Manpower brand revenue was flat year-over-year on an organic constant currency basis [11] - Experis brand revenue declined by 10% year-over-year [11] - Talent Solutions brand had a revenue increase of 7% year-over-year, with RPO experiencing a slight decline but improvement from the previous quarter [11][12] Market Data and Key Metrics Changes - The Americas segment comprised 23% of consolidated revenue, with revenue in the U.S. decreasing by 4% year-over-year [15][16] - Southern Europe revenue decreased by 1% in constant currency, with France experiencing a 5% decline [18][19] - Northern Europe segment saw an 11% decline in revenue, with the U.K. and Germany facing significant challenges [20][21] Company Strategy and Development Direction - The company is focused on maximizing service delivery while positioning itself for broader capitalizing when market conditions improve [9] - There is an emphasis on diversification, digitization, and innovation strategies to create value for clients and candidates [29][31] - The company is transitioning its South Korea business to a franchise model to drive growth more effectively in complex markets [22][45] Management's Comments on Operating Environment and Future Outlook - Management noted a cautious employer approach in Europe and North America, with optimism about market conditions improving but hesitance to expand workforce spending [5][6] - The outlook for Q4 2024 is cautious, anticipating continued challenges in North America and Europe, particularly in Northern Europe [24][25] - Management expects a slight revenue decrease in Q4, with a forecasted EPS range of $0.98 to $1.08 [25][26] Other Important Information - Free cash flow for Q3 was $67 million, down from $245 million in the prior year [23] - The company repurchased 415,000 shares for $29 million during the quarter [23] - The balance sheet ended with cash of $411 million and total debt of $1 billion [24] Q&A Session Summary Question: Trends in business performance across geographies - Management observed a boost in France from the Olympics but noted a decline in September and early October, with a revenue trend of about -6% for Q4 [33][34] - The U.S. performed in line with expectations, with mid-single digit declines, while Italy showed slight improvement [34][35] - Northern Europe faced consistent pressure, with a revenue decline of -12% expected to worsen in Q4 [36] Question: Incremental margins and efficiency improvements - Management indicated that adjustments made in 2023 helped preserve margins, with expectations of 25 basis points improvement in EBITA margin from ongoing transformations [37][39] Question: Divergence in performance between Manpower and Experis brands - The difference in performance is attributed to the post-pandemic hiring bubble in IT and professional resources, with Manpower holding up better amid economic headwinds [41][42] Question: Financial impact of the South Korea divestiture - The South Korea business is expected to generate about $80 million in revenue per quarter, with minimal impact on EPS for Q4 [44][46] Question: Economic catalysts for Northern Europe - Management highlighted the weak economic outlook in Germany and the Nordics, with potential improvements dependent on macroeconomic conditions and increased sales activities [48][49] Question: Tax proposals in France - Management noted that proposed tax increases are temporary and aimed at addressing current deficits, with a commitment to long-term tax reform [53][55] Question: Behavioral changes among employers in the temp space - Employers are holding onto their workforce longer, with no significant shift towards permanent hiring over temporary hiring observed [57][58] Question: Cost actions in response to market conditions - Restructuring actions were concentrated in Northern Europe, with significant costs in Germany and Sweden, aimed at adjusting to lower demand [60][61]

Core Insights - ManpowerGroup reported revenue of $4.53 billion for Q3 2024, a decrease of 3.1% year-over-year, with EPS at $1.29 compared to $1.38 in the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate of $4.48 billion by 1.01%, while EPS also surpassed the consensus estimate of $1.28 by 0.78% [1] Revenue Performance by Region - Revenues from Services- Americas: $1.05 billion, down 5.5% year-over-year, below the average estimate of $1.07 billion [2] - Revenues from Services- APME: $562.80 million, slightly above the estimate of $544.78 million, with a year-over-year decline of 0.4% [2] - Revenues from Services- Southern Europe: $2.10 billion, exceeding the estimate of $2.04 billion, with a year-over-year decrease of 0.6% [2] - Revenues from Services- Northern Europe: $828.30 million, below the estimate of $857.94 million, reflecting a year-over-year decline of 9.4% [2] - Revenues from Services- Southern Europe- Other Southern Europe: $496.80 million, above the estimate of $479.56 million, with a year-over-year increase of 2.4% [2] - Revenues from Services- Southern Europe- France: $1.18 billion, slightly above the estimate of $1.16 billion, with a year-over-year decline of 2.5% [2] - Revenues from Services- Americas- United States: $697.40 million, below the estimate of $713.82 million, with a year-over-year decline of 7.3% [2] - Revenues from Services- Americas- Other Americas: $353.10 million, slightly below the estimate of $355.24 million, with a year-over-year decline of 1.6% [2] - Revenues from Services- Southern Europe- Italy: $419.10 million, above the estimate of $404.87 million, with a year-over-year increase of 1.3% [2] Operating Unit Profit - Corporate expenses reported at -$30.20 million, better than the average estimate of -$42.10 million [2] Stock Performance - Manpower shares returned +1.1% over the past month, compared to the S&P 500 composite's +3.8% change, with a Zacks Rank 3 (Hold) indicating potential performance in line with the broader market [3]

ManpowerGroup (MAN) came out with quarterly earnings of $1.29 per share, beating the Zacks Consensus Estimate of $1.28 per share. This compares to earnings of $1.38 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 0.78%. A quarter ago, it was expected that this staffing company would post earnings of $1.27 per share when it actually produced earnings of $1.30, delivering a surprise of 2.36%. Over the last four quarters, the co ...

Revenues of $4.5 billion (-3% as reported, -2% constant currency) Continuation of challenging environment in North America and Europe during the quarter, good demand in Latin America and Asia-Pacific region Gross profit margin of 17.3%. Staffing margins remained solid; permanent recruitment levels stable SG&A reductions reflect adjustments to market conditions during the quarter (-5% both as reported and constant currency as adjusted1) U.S. business launched innovative Manpower branch offices inside select ...

Wall Street analysts expect ManpowerGroup (MAN) to post quarterly earnings of $1.28 per share in its upcoming report, which indicates a year-over-year decline of 7.3%. Revenues are expected to be $4.48 billion, down 4.1% from the year-ago quarter. Over the past 30 days, the consensus EPS estimate for the quarter has remained unchanged. This demonstrates the covering analysts' collective reassessment of their initial projections during this period. Prior to a company's earnings announcement, it is crucial to ...

Group 1: Investment Strategies - The Zacks Rank system focuses on earnings estimates and revisions to identify winning stocks, while value investing remains a preferred method for finding strong stocks across various market conditions [1] - The Style Scores system allows investors to find stocks with specific traits, particularly in the "Value" category, where stocks with high Zacks Ranks and "A" grades for Value are considered high-quality [2] Group 2: Company Analysis - ManpowerGroup (MAN) - ManpowerGroup (MAN) has a Zacks Rank of 2 (Buy) and a Value grade of A, with a current P/E ratio of 11.87, compared to the industry average of 15.82 [3] - The P/B ratio for MAN is 1.59, which is favorable compared to the industry's average P/B of 2.14, with a 52-week range for MAN's P/B from 1.41 to 1.74 [4] - The P/S ratio for MAN is 0.18, significantly lower than the industry's average P/S of 0.33, indicating potential undervaluation [5] Group 3: Company Analysis - RCM Technologies (RCMT) - RCM Technologies (RCMT) is rated 1 (Strong Buy) with a Value grade of A, indicating strong investment potential [5] - RCMT has a P/B ratio of 5.49, which is higher than the industry's average P/B of 2.14, with a 52-week range from 4.90 to 11.03 [6] Group 4: Overall Valuation Insights - Both ManpowerGroup and RCM Technologies are likely undervalued based on their current metrics, and their earnings outlook suggests they are strong value stocks at the moment [7]

ManpowerGroup Inc. (MAN) has had a decent run in the past three months. The company's shares have gained 5.5% compared with the 4.4% rally of its industry and the 4.6% rise of the Zacks S&P 500 composite. MAN reported mixed second-quarter 2024 results. Quarterly adjusted earnings of $1.3 per share surpassed the consensus mark by 2.4% but declined 17.7% year over year due to run-off Proservia Germany business and Argentina-related currency translation losses. Revenues of $4.5 billion lagged the consensus mar ...