ManpowerGroup Hikes Dividend - Analyst Blog
02 Maggio 2013 - 12:40PM
Zacks
ManpowerGroup Inc.
(MAN) recently announced its decision of a dividend hike. The
company raised its semi-annual dividend by 7% to 46 cents (or 92
cents annually) from 43 cents a share (or 86 cents annually).
The increased dividend will be paid
on Jun 14, 2013, to stockholders of record as of Jun 3, 2013. The
dividend yield based on the new payout and the last closing market
price is approximately 1.8%.
The news of the dividend hike
reflects Manpower’s plan of utilizing free cash to enhance
shareholders’ return, thereby boosting investors’ confidence in the
stock.
This Zacks Rank #2 (Buy) company
recently came up with better-than-expected first-quarter 2013
results. The company’s adjusted quarterly earnings came in at 63
cents a share that substantially surpassed the Zacks Consensus
Estimate of 45 cents and jumped 26% year over year.
Manpower ended the quarter with
cash and cash equivalents of $583.4 million, total debt of $751
million and shareholders’ equity of $2,501.1 million, reflecting a
debt-to-capitalization ratio of 23.1%. The company has no
borrowings under its $800 million revolving credit facility.
Manpower now expects second-quarter
2013 earnings in the range of 84 cents – 92 cents per share.
Management anticipates second-quarter total revenue to decline
between 3% and 5% in constant currency and at an equivalent rate in
U.S. dollars from the prior-year quarter.
Revenues in the Americasare
expected to remain flat, while it is expected to decline in the
range of 8% and 10% in Southern Europe. Northern Europerevenues are
projected to decrease in the range of 1% – 3%. The company expects
APME and Right Management segments to register a decline in the
low-single-digit in revenues.
Going forward, Manpower expects to
generate higher gross margin from the Americasand Southern Europe,
which in turn is expected to boost the overall gross margins of the
company. Operating margin is expected to improve during the second
quarter and projected in the range of 2.5% – 2.7%.
With a well-established network of
approximately 3,500 offices in about 80 countries, Manpower
currently offers its services to about 400,000 clients. We believe
Manpower’s brand value, comprehensive range of services, and a
strong global network provide a competitive advantage over its
peers Robert Half International Inc. (RHI),
Kelly Services, Inc. (KELYA) and
Korn/Ferry International (KFY) and reinforces its
dominant position in the market.
KELLY SVCS A (KELYA): Free Stock Analysis Report
KORN/FERRY INTL (KFY): Free Stock Analysis Report
MANPOWER INC WI (MAN): Free Stock Analysis Report
ROBT HALF INTL (RHI): Free Stock Analysis Report
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