) - a leading global company in flexible staffing services - is
slated to release its third quarter 2012 financial results on
Friday, October 19, 2012.
The current Zacks Consensus Estimate for the quarter stands at
68 cents per share, indicating an estimated year-over-year
decrease of about 30%. The estimate lies between a low of 63
cents to a high of 72 cents. Revenue, as per the Zacks Consensus
Estimate, is pegged at $5,106 million.
Manpower's second- quarter 2012 earnings came in at 76 cents a
share, which dropped 12.6% from 87 cents earned in the prior-year
quarter. However, it surpassed the Zacks Consensus Estimate of 72
cents. Unfavorable foreign currencies fluctuation undermined the
earnings by 7 cents.
Milwaukee, Wisconsin-based Manpower said that the quarter's
total revenue of $5,206.7 million fell 8.1% from the prior-year
quarter and 0.8% in constant currency. The revenue also fell
short of the Zacks Consensus Estimate of $5,224 million.
(Read full report on earnings:
Manpower Profit Dips
Agreement of Estimate Revision
For the to-be-reported quarter, the estimates remain more or
less unchanged with only one estimate going up (out of 13) over
the last 30 days, while none of the estimates moved downwards. No
revisions were noticed in the last 7 days.
For 2012, out of 13 estimates it was observed that three
estimate was revised upwards whereas one estimate was trimmed
over the last 30 days. Further, one estimate was moved up as well
as one went down in the last 7 days.
Magnitude of Estimate Revision
For the third quarter 2012, the estimate remains stagnant at
68 cents over the last 7 or 30 days mainly due to the absence of
any news affecting the estimates directly or indirectly, whereas
for 2012, the estimate went up by a penny to $2.68 per share over
the last 30 days.
Positive Earnings Surprise History
With respect to earnings surprise, Manpower has topped the
Zacks Consensus Estimate over the last four quarters with an
average of 15.8%. The earnings surprise over the last four
quarters lies between a low of 2.1% and a high of 42.9%.
The employment services industry is highly competitive with
limited barriers to entry, and Manpower faces stiff competition
in both domestic and international markets from other established
players, such as
Kelly Services Inc.
Robert Half International Inc.
). An intense competition may limit the company's market share
Manpower's significant international presence exposes it to
unfavorable foreign currency fluctuations, which may adversely
impact its top and bottom-line results.
As a result, we maintain our long-term 'Underperform'
recommendation on the stock. Manpower carries a Zacks #3 Rank
implying short-term Hold rating on the stock for the next 1-3
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