ManpowerGroup (MAN) Q2 Earnings Beat Estimates, Revenues Lag

Core Viewpoint - ManpowerGroup Inc. reported mixed second-quarter 2024 results, with earnings exceeding expectations while revenues fell short [1] Financial Performance - Quarterly adjusted earnings were $1.3 per share, surpassing the consensus estimate by 2.4% but declining 17.7% 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, slightly missing the consensus mark and decreasing 6.9% year over year on a reported basis, and 3% on a constant-currency basis [2] - Operating profit was $101.1 million, down 6.1% year over year on a reported basis, with an operating profit margin of 1.4%, slightly decreasing year over year [12] Segmental Performance - Revenues from Southern Europe were $2.1 billion, declining 5.8% on a reported basis and 4.4% at constant currency [4] - France's revenues were $1.2 billion, down 7.3% on a reported basis and 6.2% at constant currency [4] - Revenues from Italy were $434.9 million, declining 5% on a reported basis and 3.9% at constant currency [4] - Revenues from America reached $1.1 billion, surpassing expectations but down 3.1% year over year on a reported basis [10] - Northern Europe revenues declined 12.1% on a reported basis to $837.3 million, lagging estimates [11] Cash Flow and Balance Sheet - The company used $137.9 million in cash for operating activities, with capital expenditures of $11.9 million and $27 million spent on stock repurchases during the quarter [5] - Cash and cash equivalents at the end of the quarter were $468.9 million, down from $604.8 million in the previous quarter [13] - Long-term debt decreased slightly to $961.7 million from $968.9 million in the preceding quarter [13] Future Outlook - ManpowerGroup expects EPS in the range of $1.25-$1.35, with the midpoint of $1.3 being lower than the current Zacks Consensus Estimate of $1.33 [6]