ManpowerGroup Fourth Quarter Earnings Sneak Peek

ManpowerGroup (NYSE:MAN) will unveil its latest earnings tomorrow, Wednesday, January 30, 2013. 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 estimate of analysts is for profit of 77 cents per share, a decline of 21.4% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. Analysts are projecting profit to rise by 13% versus last year to $2.82.

Past Earnings Performance: Last quarter, the company beat estimates by 11 cents, coming in at net income of 79 cents a share versus the estimate of profit of 68 cents a share. It marked the fourth straight quarter of beating estimates.

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A Look Back: In the third quarter, profit fell 20.7% to $63.1 million (79 cents a share) from $79.6 million (97 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 10.5% to $5.17 billion from $5.78 billion.

Here’s how ManpowerGroup traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

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Wall St. Revenue Expectations: On average, analysts predict $5.14 billion in revenue this quarter, a decline of 6.2% from the year-ago quarter. Analysts are forecasting total revenue of $20.61 billion for the year, a decline of 6.4% from last year’s revenue of $22.01 billion.

Analyst Ratings: There are seven out of 12 analysts surveyed (58.3%) rating ManpowerGroup a buy.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of two-straight quarters of revenue declines. Revenue fell 8.1% in the second quarter and dropped again in the third quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.41 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. The company improved this liquidity measure from 1.39 in the second quarter to the last quarter driven in part by an increase in current assets. Current assets increased 2.2% to $5.08 billion while liabilities rose by 1.3% to $3.61 billion.

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