Temporary-staffing and recruitment company ManpowerGroup Inc. (MAN) on Tuesday reported a 38 percent increase in profit for the third quarter from last year, reflecting higher revenues in America as well as Europe and the absence of restructuring charges. Earnings per share for the quarter beat analysts' expectations, while revenues missed their estimates.
Jonas Prising, CEO of ManpowerGroup said, "Our third quarter results were strong, with solid revenue and profit growth in the majority of our operations and brands. While the economic recovery has recently become more choppy in some markets, we are still seeing growth opportunities and I am confident we are well positioned to deliver unique value to our clients in these uncertain times."
For the third quarter, the company's net earnings were $130.5 million or $1.61 per share, up from $94.7 million or $1.18 per share in the year-ago period.
There were no restructuring charges in the latest quarter. The prior-year quarter's results included a restructuring charge, primarily related to office consolidations and severance costs, of $0.08 per share.
On average, 15 analysts polled by Thomson Reuters expected the company to report earnings of $1.50 per share for the quarter. Analysts' estimates typically exclude special items.
Revenues from services for the quarter increased 4 percent to $5.42 billion from $5.19 billion in the year-ago period. On a constant currency basis, quarterly revenues rose 5 percent. Analysts had a consensus revenue estimate of $5.46 billion.
Revenues from the Americas operating unit increased 4 percent to $1.19 billion, while Southern Europe revenues grew 4.7 percent to $2.01 billion and Northern Europe recorded a revenue increase of 7.4 percent to $1.55 billion. However, APME revenues declined 1.5 percent to $592.5 million and Right Management revenues decreased 7.2 percent to $71.6 million.
Looking ahead to the fourth quarter, ManpowerGroup forecasts earnings in a range of $1.39 to $1.47, including an estimated unfavorable currency impact of $0.08 per share. Analysts expect the company to report earnings of $1.49 per share for the quarter.
MAN is trading at $63.00, up $1.33 or 2.16 percent on a volume of 675,185 shares.
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