ManpowerGroup's Q4 revenue, adjusted EPS beat estimates

Overview

• Global workforce solutions firm's Q4 revenue rose 7%, beating analyst expectations

• Adjusted EPS for Q4 beat analyst expectations

• Company took restructuring actions to improve cost efficiency

Outlook

• ManpowerGroup anticipates Q1 diluted EPS between $0.45 and $0.55

• Company sees opportunity to capitalize on improving market demand

• ManpowerGroup plans to drive productivity gains through transformation strategy

Result Drivers

• MARKET STABILIZATION - ManpowerGroup reported ongoing stabilization in North America and Europe, with sequential improvement in France and growth in Italy

• COST ACTIONS - Restructuring actions and cost measures led to sequential improvement in SG&A trends

• SOFTER RECRUITMENT - Gross profit margin affected by softer permanent recruitment activity in Europe

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 8 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the employment services peer group is "buy."

• Wall Street's median 12-month price target for ManpowerGroup Inc is $42.00, about 45% above its January 28 closing price of $28.96

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nPn55jRZca

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