ManpowerGroup Beats Q1 Estimates, Guides Q2 EPS Above Consensus

ManpowerGroup Inc. MAN reported first-quarter FY21 revenue growth of 4.4% year-over-year to $5.14 billion, beating the consensus of $4.67 billion.

  • Gross margin expanded by 184 bps to 17.4%. Operating income increased by 40.9% Y/Y to $138.7 million, and the margin expanded by 70 bps to 2.7%.
  • Q1 Adjusted EPS was $1.88, beating the consensus of $1.47.
  • Revenue from services: Americas $1.25 billion (+24.8% Y/Y), Southern Europe $2.19 billion (+1.6% Y/Y), Northern Europe $1.09 billion (-3.5% Y/Y) and APME $618.2 million (-1.5% Y/Y).
  • ManpowerGroup registered strong performance of higher-margin brands during the quarter, with Experis recording 31% revenue growth and Talent Solutions 10% revenue growth.
  • ManpowerGroup generated cash from operating activities for the quarter of $70.6 million, compared to $140.9 million a year ago.
  • The company held cash and equivalents of $777.3 million as of March 31, 2022.
  • During the quarter, the company repurchased $60 million in shares and reduced incremental acquisition debt from $75 million to $50 million.
  • Q2 Outlook: ManpowerGroup expects Q2 EPS of $2.31 - $2.39 versus the consensus of $2.05. The company's outlook includes an estimated unfavorable currency impact of 19 cents.
  • Price Action: MAN shares traded higher by 4.13% at $92.43 on the last check Tuesday.
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