KELYA Kelly Services Inc

Manpower Group (MAN), the global leader in the employment services industry, is scheduled to report its second-quarter 2011 financial results on Thursday, July 21, 2011.

The current Zacks Consensus Estimate for the quarter is 79 cents per share. For the quarter under review, revenue is $5,489 million, according to the Zacks Consensus Estimate.

First-Quarter 2011, a Synopsis
 
Manpower posted better-than-expected first-quarter 2011 results on the heels of revenue growth across all regions with several European and emerging markets portraying robust trends. Better expense control lended support to the bottom-line. However, a drop in demand for the counter-cyclical outplacement services impacted results.

The quarterly earnings of 43 cents per share outpaced the Zacks Consensus Estimate of 32 cents and rose substantially from 4 cents in the prior-year quarter. The foreign currency fluctuation favorably impacted net earnings by 3 cents per share. Net earnings for the quarter under review also surpassed management’s guidance range of 26 cents to 34 cents a share.

Milwaukee, Wisconsin-based Manpower said that total revenue for the quarter soared 23.7% to $5,072.4 million from the prior-year quarter, and 21.8% in constant currency. The quarterly revenue also came well ahead of the Zacks Consensus Estimate of $4,894 million.

Guidance
 
Manpower now expects second-quarter 2011 earnings in the range of 74 cents to 82 cents a share. 

Second-Quarter 2011 Consensus
 
Analysts surveyed by Zacks expect Manpower to post second-quarter 2011 earnings of 79 cents per share, which remains at the high-end of the company’s guidance range. The current Zacks Consensus Estimate compares with 40 cents earned in the year-ago quarter. The estimates in the current Zacks Consensus Estimate for the quarter range from a low of 74 cents to a high of 82 cents.

Zacks Agreement & Magnitude

Of the 14 analysts following the stock, none revised estimates either upward or downward in the last 30 or 7 days, thereby keeping the Zacks Consensus Estimate unchanged.

Positive Earnings Surprise History

With respect to earnings surprises, Manpower has averaged 39.1% over the past 4 quarters. Given the past performance we expect the company to outperform the Zacks Consensus Estimate.

Manpower to Outperform

Manpower’s comprehensive range of services makes it a truly global staffing firm. The company provides services for the entire employment and business cycle, including permanent, temporary and contract recruitment, employee assessment and selection, training, outplacement, outsourcing and consulting.

The company’s brand value and strong global network provide a competitive advantage and reinforce its dominance in the market. Manpower leverages a strong network of about 3,900 offices, spanning 80 countries and serving approximately 400,000 clients. It benefits from growth prospects in under-penetrated staffing markets.

With the improvement in economic conditions, the company’s staffing business is also stabilizing. Given the strong fundamentals of Manpower, we believe that the stock will outperform the broader market in the long run. Therefore, we have a long-term ‘Outperform’ rating on the stock.

However, Manpower, which competes with Kelly Services Inc. (KELYA), holds a Zacks #3 Rank that translates into a short-term ‘Hold’ rating. Manpower’s Right Management brand continues to struggle due to a drop in demand for the counter-cyclical outplacement services. Revenue from Right Management services plunged 22.7% in constant currency in the first-quarter 2011. Management expects the Right Management business to decline between 10% and 12% in second-quarter 2011 in constant currency.

Grafico Azioni Kelly Services (NASDAQ:KELYA)
Storico
Da Giu 2024 a Lug 2024

Grafico Azioni Kelly Services (NASDAQ:KELYA)
Storico
Da Lug 2023 a Lug 2024