) 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
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
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
Kelly Services, Inc
) and reinforces its dominant position in the market.
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