Earnings Review and Free Research Report: ManpowerGroup Reported Better Than Expected Revenue and Earnings Results

Research Desk Line-up: Robert Half Intl. Post Earnings Coverage

LONDON, UK / ACCESSWIRE / July 31, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on ManpowerGroup Inc. (NYSE: MAN), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=MAN, following the Company’s disclosure of its second quarter fiscal 2017 earnings results on July 24, 2017. The staffing Company reported a 6% gain in revenue on a constant currency basis, while its GAAP earnings also improved 7%. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member’s account at:

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Get more of our free earnings reports coverage from other constituents of the Staffing & Outsourcing Services industry. Pro-TD has currently selected Robert Half International Inc. (NYSE: RHI) for due-diligence and potential coverage as the Company reported on July 25, 2017, its revenues and earnings for Q2 which ended on June 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on Robert Half Intl. when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on MAN; also brushing on RHI. With the links below you can directly download the report of your stock of interest free of charge at:

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Earnings Reviewed

ManpowerGroup’s revenue for Q2 2017 totaled $5.17 billion, reflecting an increase of 3% on a y-o-y basis. On a constant currency basis, revenues increased 6%, which was above the high-end of the Company’s guidance range, primarily due to stronger growth in Southern Europe. On a same-day basis, ManpowerGroup’s underlying organic constant currency growth rate was 7%. The Company’s revenue numbers exceeded analysts’ top-line expectations of $5.03 billion.

During Q2 2017 ManpowerGroup’s gross margin totaled 16.7%, a 40 basis point decrease from the prior year. The staffing gross margin had a 30 basis point unfavorable impact on overall gross margin, which was primarily driven by business mix. The Company’s operating profit in the reported quarter was $195 million, up 1% in constant currency. On an adjusted basis, ManpowerGroup’s operating profit was $205 million, an increase of 7% in constant currency.

ManpowerGroup reported that net earnings for the three months ended June 30, 2017, were $117.0 million, or $1.72 per diluted share, compared to net earnings of $115.4 million, or $1.60 per diluted share, in the prior year’s corresponding period. The Company’s reported quarter included restructuring charges which reduced earnings per share by $0.10 per share, while earnings were also negatively impacted $0.03 per share by changes in foreign currencies compared to the prior year. ManpowerGroup’s adjusted earnings for the reported quarter totaled $1.82 per share, which topped Wall Street’s estimates of $1.73 per share.

Segment Results

During Q2 2017, ManpowerGroup’s Americas segment, which was comprised of 20% of consolidated revenue, reported sales of $1.1 billion; a decrease of 1% in constant currency. The segment’s Operating Unit Profit (OUP) came in at $57.6 million in the reported quarter compared to $53.8 million in the prior year’s same quarter.

The US is the largest country in the Americas segment, comprising 64% of the segment’s revenues in Q2 2017. Revenues in the US were $671 million in the reported quarter, down 7% compared on a y-o-y basis. During Q2 2017, excluding the restructuring charges, OUP for the Company’s US business increased 22% to $49 million.

ManpowerGroup’s Southern Europe, which contributed 41% of consolidated revenue in Q2 2017, generated revenue of $2.1 billion; reflecting an increase of 13% in constant currency. The segment’s OUP was $110.3 million, up 10% on a y-o-y basis in constant currency, while its OUP margin was 5.2%, down 10 basis points from the prior year. Revenue from France which comprised 64% of the Southern Europe segment revenue rose 11% on a y-o-y basis in constant currency.

ManpowerGroup’s Northern Europe segment’s revenue grew 2% in constant currency to $1.3 billion and comprised of 25% consolidated revenue in the reported quarter. The segment’s OUP came in at $33 million in the reported quarter or $34 million before restructuring costs. OUP was down 6% in constant currency, and OUP margin was down 20 basis points before the restructuring charges. The Company’s largest market in the Northern Europe segment was the UK, which represented 30% of the segment. UK’s revenues were down 10% in constant currency and down 8% on a billing day’s adjusted basis.

The Asia/Pacific Middle-East segment contributed 13% of total Company revenue and reported growth of 5% in constant currency to $643 million, or 7% after adjusting for billing days. OUP was $23 million in the quarter, representing an increase of 6% in constant currency, and OUP margin was stable at 3.6%.

ManpowerGroup’s Right Management business revenues were down 20% in constant currency to $57 million, following an 11% decline in Q1 2017. The segment’s OUP decreased 41% on a constant currency basis to $8 million, and OUP margin was 14.8%.

Cash Matters

During H1 2017, ManpowerGroup’s free cash flow was $122 million, including the sale of the 2016 France CICE tax credit in March for $144 million. Excluding CICE sales in both years, free cash flow represented an outflow of $22 million in 2017 compared to an inflow of $88 million in the prior year.

During Q2 2017, ManpowerGroup repurchased 566,000 shares of stock for $59 million, bringing total purchases for the 6-month period to 1.1 million shares for $116 million. As of June 30, 2017, the Company had 3.6 million shares remaining for repurchase under the 6 million share program approved in July of 2016.

As of June 30, 2017, ManpowerGroup had cash of $573 million and total debt of $891 million, bringing its net debt to $318 million. The Company’s total debt-to-trailing 12-months EBITDA was 1.1 and total debt-to-total capitalization at 26%.

Outlook

For Q3 2017, ManpowerGroup is forecasting earnings per share to be in the range of $1.90 to $1.98, which includes a positive impact from foreign currency of $0.02 per share. The Company’s constant currency revenue growth guidance is expected to be in the range of 4% and 6%.

Stock Performance

On Friday, July 28, 2017, the stock closed the trading session at $105.91, slightly climbing 0.53% from its previous closing price of $105.35. A total volume of 659.80 thousand shares have exchanged hands, which was higher than the 3-month average volume of 543.43 thousand shares. ManpowerGroup’s stock price skyrocketed 4.88% in the last three months, 13.06% in the past six months, and 52.43% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have surged 19.17%. The stock is trading at a PE ratio of 16.19 and has a dividend yield of 1.76%. At Friday’s closing price, the stock’s net capitalization stands at $7.07 billion.

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