ManpowerGroup Q3 revenue slightly misses expectations

Overview

• Global workforce solutions firm's Q3 revenue grew 4% yr/yr, a slight miss versus analyst expectations

• Adjusted EPS for Q3 met analyst expectations

• Company cites U.S. Manpower strength and improved Experis trends as drivers of growth

Outlook

• ManpowerGroup expects Q4 diluted EPS between $1.03 and $1.13

• Company forecasts a 44% effective tax rate for Q4

• ManpowerGroup says improving demand and transformation progress position it for sustainable, profitable growth

Result Drivers

• U.S. MANPOWER STRENGTH - Co said top-line growth was driven by strength in Manpower, particularly in the United States

• EXPERIS IMPROVEMENT - Co said improving global Experis trends with U.S. Experis crossing over to growth during the quarter

• COST ACTIONS - Co said improved SG&A trend reflects continued cost actions

Company press release:

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 9 "hold" and no "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 $55.50, about 6.8% above its October 14 closing price of $51.96

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 8 three months ago

Reuters Recommended Reads

• Oct 14 - Robert Walters returns to growth as permanent hiring improves

• Oct 13 - UK recruiter Michael Page returns to profit growth after four-year slump

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)