ManpowerGroup's Q3 Earnings Beat Estimates, Revenues Down Y/Y

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].