ManpowerGroup, Inc. MAN reported impressive second-quarter 2025 results, wherein both earnings and revenues beat the Zacks Consensus Estimate but failed to impress the market.
In response to the earnings beat, the stock has improved 5% since the company released results on July 15.
Quarterly adjusted EPS came in at 78 cents, which beat the Zacks Consensus Estimate by 13% and decreased 40% year over year. Total revenues of $4 billion surpassed the consensus estimate by 1.6% and rose 4.2% year over year.
ManpowerGroup shares have declined 38.1% over the past year compared with a 29.3% drop in the industry it belongs to and the 13.6% rise of the Zacks S&P 500 composite.
ManpowerGroup Inc. Price, Consensus and EPS Surprise
ManpowerGroup Inc. price-consensus-eps-surprise-chart | ManpowerGroup Inc. Quote
MAN: Other Quarterly Details
Revenues from America of $1.06 billion were above our expectations but tumbled 0.4% year over year on a reported basis and increased 2% at cc. In the United States, revenues reached $674.1 million, surpassing our estimate of $669 million and declining 3.3% year over year. In the Other Americas subgroup, revenues of $385.9 million beat our projection of $346.4 million. These revenues increased 5.1% on a reported basis and 11.9% at cc.
Revenues from Southern Europe of $2.2 billion were above our projection of $2.06 billion, rising 2.4% on a reported basis and declining 2.8% at cc. Revenues from France were $1.2 billion, above our expectations, but were down 1.3% on a reported basis and 6.3% at cc. Revenues from Italy amounted to $475.9 million, surpassing our estimate of $455 million, which increased 9.4% on a reported basis and increased 3.9% at cc. The Other Southern Europe sub-segment generated revenues of $524.1 million, which beat our expectations of $495 million. These were up 5% year over year on a reported basis and down 0.6% at cc.
Northern Europe revenues declined 5.1% on a reported basis and 10.4% at cc to $794.4 million, outpacing our estimate of $756.5 million. APME revenues totaled $525.3 million, surpassing our estimate of $506.1 million, down 3% on a reported basis and down 8% at cc.
MAN’s Operating Performance
The company registered an operating loss of $25.3 million, down 125% year over year on a reported basis and 127.9% at cc.
Key Balance Sheet & Cash Flow Figures of MAN
ManpowerGroup exited the quarter with a cash and cash equivalent balance of $395 million compared with $289.8 million in the second quarter of 2025. Long-term debt at the end of the quarter was $470.3 million compared with $929.4 million in the preceding year’s December-end quarter.
The company used $3428 million of cash from operating activities. Capital expenditures were $31.3 million. It spent $38.2 million on repurchasing common stock in the quarter.
MAN’s Q2 Guidance
Management guided second-quarter EPS in the range of 77-87 cents, with a midpoint of 82 cents, which met our current Zacks Consensus Estimate. The company’s guided range includes an estimated favorable currency impact of 3 cents and a 48% effective tax rate.
ManpowerGroup currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks to Consider
Here are a few stocks from the broader Business Services sector, which, according to our model, have the right combination of elements to beat on earnings this season.
Api Group APG: The Zacks Consensus Estimate for the company’s second-quarter 2025 revenues is pegged at $1.90 billion, indicating a 10% rise year over year. For earnings, the consensus mark is pegged at 37 cents per share, suggesting a 12% increase from the year-ago quarter’s reported figure. The company beat the consensus estimate in three of the past four quarters and met once, with an average surprise of 4.1%.
VLTO currently has an Earnings ESP of +2.05% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Fidelity National Information Services FIS: The Zacks Consensus Estimate for the company’s second-quarter 2025 revenues is pegged at $2.6 billion, implying a 3.5% rise year over year. For earnings, the consensus mark is pegged at $1.36 per share. The company beat the consensus estimate in each of the past four quarters, with an average surprise of 5.9%.
FIS currently has an Earnings ESP of +0.67% and a Zacks Rank of 3.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>ManpowerGroup Inc. (MAN) : Free Stock Analysis Report
Fidelity National Information Services, Inc. (FIS) : Free Stock Analysis Report
APi Group Corporation (APG) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
