ManpowerGroup Third Quarter Earnings Sneak Peek

ManpowerGroup (NYSE:MAN) will unveil its latest earnings on Friday, October 19, 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 net income of 68 cents per share, a decline of 29.9% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 80 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 68 cents during the last month. Analysts are projecting profit to rise by 17.3% compared to last year’s $2.68.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 4 cents, reporting profit of 76 cents per share against a mean estimate of net income of 72 cents per share.

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A Look Back: In the second quarter, profit fell 43.6% to $41 million (51 cents a share) from $72.7 million (87 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 8.1% to $5.21 billion from $5.67 billion.

Stock Price Performance: Between September 17, 2012 and October 15, 2012, the stock price dropped $5.23 (-12.9%), from $40.43 to $35.20. It saw one of its worst periods between July 3, 2012 and July 16, 2012 when shares fell for nine straight days, dropping 11.6% (-$4.38) over that span. The stock price saw one of its best stretches over the last year between July 23, 2012 and July 31, 2012, when shares rose for seven straight days, increasing 9.8% (+$3.17) over that span.

Wall St. Revenue Expectations: Analysts are projecting a decline of 11.8% in revenue from the year-earlier quarter to $5.1 billion.

Key Stats:

On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 16.3% in the third quarter of the last fiscal year, 5.3% in the fourth quarter of the last fiscal year and 0.5%in the first quarter before dropping in the second 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 1.39 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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