) rose nearly 7% in the
session as the company posted better-than-expected first-quarter
2014 results. Earnings per share came in at 86 cents, which
handily beat the Zacks Consensus Estimate of 67 cents and
increased substantially year over year.
Consistently strong performances across all major regions, along
with effective cost management were the primary growth drivers.
Revenues & Margins
Total revenue rose 2.8% (up 3.0% in constant currency) year over
year to $4,904.0 million, based on robust regional performances.
Moreover, reported revenues came ahead of the Zacks Consensus
Estimate of $4,836.0 million.
Gross profit increased 3.3% (up 3.6% in constant currency) to
$816.5 million due to higher revenues, partly offset by a rise in
cost of services. Gross margin remained almost unchanged at
ManpowerGroup posted operating profit of $126.9 million, which
rose more than twofold from the prior-year quarter.
Selling and administrative expenses fell 6.3% (down 6.1% on
constant currency) to $689.6 million.
By geographic segments, revenues from the
grew 2.1% year over year to $720.5 million. The segment's
operating profit increased 81.2% to $13.4 million from the
, revenues decreased 9.4% (but grew 3.6% in constant currency) to
$350.6 million while the segment's operating profit rose 43.8%
(up 64.6% in constant currency) to $12.6 million.
, revenues rose 6.3% year over year (up 2.3% in constant
currency) to $1,217.3 million while the segment's operating
profit increased 72.0% (up 65.0% in constant currency) to $51.2
, revenues increased 6.5% year over year (up 2.5% in constant
currency) to $274.7 million. The segment's operating profit rose
7.8% (up 3.4% in constant currency) to $12.6 million.
Other Southern Europe
, revenues increased 18.9% (up 14.7% in constant currency) to
$230.0 million from the year-ago quarter. The segment's operating
profit rose 97.5% (up 90.0% in constant currency) to $4.6
, revenues rose 6.8% (up 4.6% in constant currency) to $1,463.9
million while operating profit increased over fourfold to $38.4
million, both on a year-over-year basis.
APME (Asia Pacific Middle East)
, revenues came in at $573.7 million, down 9.3% (down 1.1% in
constant currency) year over year. The segment's operating profit
came in at $20.2 million, up 38.1% (up 52.4% in constant
currency) from the prior-year quarter.
decreased 4.3% (down 4.0% in constant currency) year over year to
$73.3 million. The company posted operating income of $8.3
million, up substantially from the year-ago quarter.
Other Financial Details
ManpowerGroup ended the quarter with cash and cash equivalents of
$696.5 million, total debt of $529.7 million, which reflected a
debt-to-capitalization ratio of 15.1% and shareholders' equity of
Moreover, ManpowerGroup incurred a capital expenditure of $8.3
million during the quarter.
ManpowerGroup now expects second-quarter 2014 earnings per share
in the range of $1.26 to $1.34. The Zacks Consensus Estimate for
second-quarter 2014 stands at $1.21.
With a well-established network in about 80 countries, Manpower
currently provides services to about 400,000 clients. We believe
that the company's brand value, broad range of services and a
strong global footprint provide it a competitive edge over peers.
Currently, Manpower carries a Zacks Rank #2 (Buy). Some other
better ranked stocks in the same sector include
On Assignment Inc.
CTPartners Executive Search Inc.
). While On Assignment sports a Zacks Rank #1 (Strong Buy),
CTPartners and Korn/Ferry International have the same Zacks Rank
ON ASSIGNMENT (ASGN): Free Stock Analysis
CTPARTNERS EXEC (CTP): Free Stock Analysis
KORN/FERRY INTL (KFY): Free Stock Analysis
MANPOWER INC WI (MAN): Free Stock Analysis
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