Manpower Balances Risk-Reward - Analyst Blog
15 Settembre 2011 - 6:25PM
Zacks
We currently maintain our long-term Neutral rating on
ManpowerGroup (MAN), the global leader in the
employment services industry. Moreover, the company also holds a
Zacks #3 Rank, which translates into a short-term Hold rating and
correlates with our long-term outlook.
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 provides it
a competitive advantage and reinforces its dominance in the market.
Manpower leverages a strong network of about 3,900 offices,
spanning across 80 countries and serving approximately 400,000
clients. It benefits from growth prospects in under-penetrated
staffing markets.
Earlier, Manpower had posted better-than-expected second-quarter
2011 results that topped the Zacks’ expectation on the heels of
revenue growth across all regions. Better expense control also lent
support to the bottom line. However, fall in demand for the
counter-cyclical outplacement services continues to impact the
results.
The quarterly earnings of 87 cents a share outpaced the Zacks
Consensus Estimate of 79 cents and more than doubled from 40 cents
in the prior-year quarter. The foreign currency fluctuation
favorably impacted net earnings by 11 cents a share.
Net earnings for the quarter under review also surpassed
management’s guidance range of 74 cents to 82 cents a share.
Milwaukee, Wisconsin-based Manpower, said that total revenue for
the quarter soared 23.6% to $5,667.3 million from the prior-year
quarter, and 12% in constant currency. The quarterly revenue also
came well ahead of the Zacks Consensus Estimate of $5,491
million.
Manpower, which competes with Kelly Services
Inc. (KELYA), now expects third-quarter 2011 earnings in
the range of 90 cents to $1.00 per share, including a favorable
impact of foreign currency translation of 10 cents. Management has
projected a total revenue growth of 8% to 10% in constant currency
for the quarter.
However, 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 19.9% in
constant currency in the second quarter. Management expects the
Right Management business to decline between 9% and 11% in the
third quarter in constant currency.
KELLY SVCS A (KELYA): Free Stock Analysis Report
MANPOWER INC WI (MAN): Free Stock Analysis Report
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