) is slated to report its first-quarter 2013 results before the
market opens on Apr 19. In the last quarter, it posted a positive
surprise of 18.2%. Let's see how things are shaping up for this
Growth Factors this Past Quarter
Manpower, the global leader in the employment services
industry, posted stronger-than- anticipated fourth-quarter 2012
results on the back of effective cost management and better gross
margin. The company is contemplating on exiting lower margin
business and venturing into high margin business. On the other
hand, the ManpowerGroup Solutions business sustained its growth
momentum. The demand for the counter-cyclical outplacement
services also portrayed signs of steadiness, which increased 16%
during the quarter. Canada, U.K., China and India, all
contributed to the company's growth story.
Our proven model does not conclusively show that Manpower is
likely to beat earnings this quarter. This is because a stock
needs to have both a positive Earnings ESP (Read: Zacks Earnings
ESP: A Better Method) and a Zacks Rank #1, #2 or #3 for this to
happen. This is not the case here as you will see below.
ESP for Manpower is -2.27%. This is because the Most Accurate
Estimate stands at 43 cents, while the Zacks Consensus Estimate
is pegged at 44 cents.
Zacks Rank #2 (Buy):
Manpower's Zacks Rank #2 (Buy) lowers the predictive power of ESP
because the Zacks Rank #2 when combined with a negative ESP makes
surprise prediction difficult. We caution against stocks with
Zacks Ranks #4 and #5 (Sell rated stocks) going into the earnings
announcement, especially when the company is seeing negative
estimate revisions momentum.
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows they have the right combination of elements to post
an earnings beat this quarter:
Hertz Global Holdings, Inc.
), Earnings ESP of +5.56% and a Zacks Rank #1 (Strong Buy).
), Earnings ESP of +3.85% and a Zacks Rank #1 (Strong Buy).
Kraft Foods Group, Inc.
), Earnings ESP of +3.13% and a Zacks Rank #2 (Buy).
CONNS INC (CONN): Free Stock Analysis Report
HERTZ GLBL HLDG (HTZ): Free Stock Analysis
KRAFT FOODS GRP (KRFT): Free Stock Analysis
MANPOWER INC WI (MAN): Free Stock Analysis
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