), the global leader in the employment services industry, to beat
expectations when it reports fourth-quarter 2012 results on Jan
Why a Likely Positive Surprise?
Our proven model shows that Manpower is likely to beat
earnings because it has the right combination of two key
Positive Zacks ESP:
ManpowerGroup currently has an Earnings ESP (Read:
Zacks Earnings ESP: A Better Method
) of +1.30%. This is because the Most Accurate estimate stands at
78 cents, while the Zacks Consensus Estimate is pegged at 77
Zacks Rank #2 (Buy):
Note that stocks with Zacks Ranks of #1, #2 and #3 have a
significantly higher chance of beating earnings estimates. The
sell-rated stocks (Zacks Rank #4 and #5) should never be
considered going into an earnings announcement.
The combination of Manpower's Zacks Rank #2 (Buy) and +1.30%
ESP make us very confident regarding a positive earnings beat on
What is Driving the Better than Expected
Manpower's brand value and strong global network provides a
competitive advantage to the company and reinforces its dominant
position in the market. The company's comprehensive range of
services makes it a true global staffing firm. The company is
contemplating on exiting its lower margin business and venturing
into high margin business, as well as deriving benefits from
growth prospects in under penetrated staffing markets. The
company is also focusing on controlling expenses. On the other
hand, the ManpowerGroup Solutions business is sustaining its
growth momentum. All these factors are expected to drive results
in the upcoming quarter.
The positive trend is seen in the trailing four-quarter
average surprise of 19.3%.
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:
Hertz Global Holdings, Inc.
), Earnings ESP of +6.25% and Zacks Rank #1 (Strong Buy)
), Earnings ESP of +1.25% and Zacks Rank #2 (Buy)
Global Payments Inc.
), Earnings ESP of +1.14% and Zacks Rank #2 (Buy)
GLOBAL PAYMENTS (GPN): Free Stock Analysis
HERTZ GLBL HLDG (HTZ): Free Stock Analysis
MASTERCARD INC (MA): Free Stock Analysis
MANPOWER INC WI (MAN): Free Stock Analysis
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