ManpowerGroup Second Quarter Earnings Sneak Peek

ManpowerGroup (NYSE:MAN) will unveil its latest earnings on Friday, July 20, 2012. Manpower is in the employment services industry whose five brands are Manpower, Manpower Professional, Elan, Jefferson Wells, and Right Management. The company provides a range of services for the entire employment and business cycle.

ManpowerGroup Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 73 cents per share, a decline of 16.1% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 74 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 73 cents during the last month. For the year, analysts are projecting net income of $2.88 per share, a decline of 11.1% from last year.

Past Earnings Performance: Last quarter, the company beat estimates by 15 cents, coming in at profit of 50 cents a share versus the estimate of net income of 35 cents a share. It marked the fourth straight quarter of beating estimates.

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Stock Price Performance: Between April 19, 2012 and July 16, 2012, the stock price fell $10.50 (-24%), from $43.77 to $33.27. It saw one of its worst periods between July 21, 2011 and August 8, 2011 when shares fell for 13 straight days, dropping 26.8% (-$14.74) over that span. The stock price saw one of its best stretches over the last year between June 13, 2012 and June 20, 2012, when shares rose for six straight days, increasing 7.8% (+$2.70) over that span.

A Look Back: In the first quarter, profit rose 12.6% to $40.2 million (50 cents a share) from $35.7 million (43 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 0.5% to $5.1 billion from $5.07 billion.

Wall St. Revenue Expectations: On average, analysts predict $5.23 billion in revenue this quarter, a decline of 7.8% from the year-ago quarter. Analysts are forecasting total revenue of $21.12 billion for the year, a decline of 4% from last year’s revenue of $22.01 billion.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 23.6% in the second quarter of the last fiscal year, 16.3% in the third quarter of the last fiscal year and 5.3% in the fourth quarter of the last fiscal year before increasing again in the first quarter.

Analyst Ratings: With nine analysts rating the stock a buy, none rating it a sell and four rating the stock a hold, there are indications of a bullish stance by analysts.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.35 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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