ManpowerGroup (MAN, Financial) reported its second-quarter earnings per share (EPS) with significant impacts from a non-cash goodwill and intangible asset impairment charge, along with restructuring costs and net losses from business sales now transitioning to franchises. These factors collectively reduced the EPS by $2.22, resulting in an adjusted EPS of 78 cents once excluded. The company's revenue for the quarter stood at $4.5 billion, surpassing the consensus estimate of $4.34 billion.
Despite the challenging economic and geopolitical landscape, CEO Jonas Prising highlighted ManpowerGroup's strategic advancements in diversification, digitization, and innovation. The firm is focusing on enhancing its position as a leading strategic workforce partner amidst ongoing technological changes. While facing mixed demand across global markets, there are initial signs of stabilization in regions like the U.S. and parts of Europe. The company continues to aim for market share growth and is refining its cost structures. It is also investing in fortifying its digital framework to propel AI adoption, which is expected to benefit clients and candidates in subsequent quarters.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 8 analysts, the average target price for ManpowerGroup Inc (MAN, Financial) is $48.25 with a high estimate of $60.00 and a low estimate of $41.00. The average target implies an upside of 11.95% from the current price of $43.10. More detailed estimate data can be found on the ManpowerGroup Inc (MAN) Forecast page.
Based on the consensus recommendation from 12 brokerage firms, ManpowerGroup Inc's (MAN, Financial) average brokerage recommendation is currently 2.8, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for ManpowerGroup Inc (MAN, Financial) in one year is $73.09, suggesting a upside of 69.58% from the current price of $43.1. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the ManpowerGroup Inc (MAN) Summary page.
MAN Key Business Developments
Release Date: April 17, 2025
- Revenue: $4.1 billion, down 5% year over year in constant currency.
- Reported EBITA: $36 million.
- Adjusted EBITA: $52 million, a decrease of 32% in constant currency year over year.
- Reported EBITA Margin: 0.9%.
- Adjusted EBITA Margin: 1.3%.
- Reported Earnings Per Diluted Share: $0.12.
- Adjusted Earnings Per Diluted Share: $0.44, a decrease of 51% year over year in constant currency.
- Gross Profit Margin: 17.1% for the quarter.
- SG&A Expense: $670 million, down 4% year over year on a constant currency basis.
- Free Cash Flow: Outflow of $167 million compared to an inflow of $104 million in the prior year.
- Net Debt: $677 million at quarter end.
- Americas Revenue: $1.1 billion, an increase of 5% year over year in constant currency.
- Southern Europe Revenue: $1.8 billion, a 5% decrease in constant currency.
- Northern Europe Revenue: $731 million, a 14% decline in constant currency.
- Asia Pacific Middle East Revenue: $476 million, an increase of 7% in organic constant currency.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- ManpowerGroup Inc (MAN, Financial) reported revenue of $4.1 billion for the first quarter, which was above the high end of their constant currency guidance range.
- The company saw positive revenue growth in key markets such as the US, Italy, Spain, and continued strong performance in Latin America and Asia Pacific Middle East.
- ManpowerGroup Inc (MAN) is making significant progress in its back-office transformation, with 50% of revenues now going through the new platform, which is expected to yield efficiency gains.
- The company is leveraging AI and data analytics to provide unique workforce insights to clients, enhancing service delivery and client engagement.
- ManpowerGroup Inc (MAN) continues to invest in key markets with growth potential, such as Italy and Japan, and is seeing positive results from these investments.
Negative Points
- Revenue decreased by 5% year over year in constant currency, reflecting a challenging environment in Europe and North America.
- Adjusted earnings per share decreased by 51% year over year in constant currency, indicating significant pressure on profitability.
- Permanent recruitment softened further, impacting margins, particularly in France and other European countries.
- The company faced a 32% decrease in adjusted EBITA in constant currency year over year, highlighting operational challenges.
- ManpowerGroup Inc (MAN) is experiencing elevated uncertainty due to recent US trade policy announcements, affecting client confidence and hiring decisions.
