ManpowerGroup Earnings Cheat Sheet: Revenue Grows Again by Double-Digits

ManpowerGroup (NYSE:MAN) reported its results for the third quarter. 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.

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ManpowerGroup Earnings Cheat Sheet for the Third Quarter

Results: Net income for ManpowerGroup rose to $79.6 million (97 cents per share) vs. $51.3 million (62 cents per share) in the same quarter a year earlier. This marks a rise of 55.2% from the year earlier quarter.

Revenue: Rose 16.3% to $5.78 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: MAN beat the mean analyst estimate of 95 cents per share. Analysts were expecting revenue of $5.82 billion.

Quoting Management: Jeffrey A. Joerres, ManpowerGroup Chairman and CEO, said, “We experienced solid growth throughout all geographies. In the third quarter, our strategic investments in differentiation, diversification and productivity contributed to our operating profit increase of 45%. Our core business, Manpower, continues to grow despite the tepid economic environment, while our professional and project-based resourcing business, Experis, and our solutions business are rapidly adding to profitability and enhancing ManpowerGroup’s positioning with our clients.”

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 20.1%, with the biggest boost coming in the first quarter when revenue rose 23.7% from the year earlier quarter.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 8 cents in the second quarter, by 11 cents in the first quarter, and by 5 cents in the fourth quarter of the last fiscal year.

Gross margin shrank 0.5 percentage point to 16.5%. The contraction appeared to be driven by increased costs, which rose 17% from the year earlier quarter while revenue rose 16.3%.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the fourth quarter is 92 cents per share, down from $1 ninety days ago. The average estimate for the fiscal year is now $3.17 per share, down from $3.25 sixty days ago.

Competitors to Watch: Robert Half Intl. Inc. (NYSE:RHI), Kelly Services, Inc. (NASDAQ:KELYA), SFN Group Inc (NYSE:SFN), Volt Information Sciences, Inc. (VISI), Barrett Business Services, Inc. (NASDAQ:BBSI), Kforce Inc. (NASDAQ:KFRC), Hudson Highland Group, Inc. (NASDAQ:HHGP), TrueBlue, Inc. (NYSE:TBI), Mastech Holdings, Inc. (AMEX:MHH), and General Employment Enterprises, Inc. (AMEX:JOB).

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(Source: Xignite Financials)