Markets

What to Expect from ManpowerGroup's (MAN) Q3 Earnings?

ManpowerGroup Inc.MAN is set to report third-quarter numbers before the opening bell on Oct 21, 2015. In the second quarter, the company surpassed the Zacks Consensus estimate by a margin of 4.72%. Notably, the company has beaten the Zacks Consensus Estimate in all of the last four quarters, with an average earnings surprise of 5.2%. Now, the big question is that whether the company will be able keep its earnings streak alive?

Earnings Whispers

Our proven model does not conclusively show that ManpowerGroup is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. ManpowerGroup has an Earnings ESP of -0.65% as the Most Accurate estimate is at $1.54, while the Zacks Consensus Estimate is $1.55. ManpowerGroup carries a Zacks Rank #1 (Strong Buy), which when combined with negative ESP makes surprise prediction difficult.

Factors Influencing This Quarter

Concerns about the health of the Chinese economy and slowdown in the global markets may not bode well for the company. As recovery is slow, management has adopted a strong pricing and productivity control approach to ensure uninterrupted profitability. Including a negative impact of 24 cents from foreign exchange, ManpowerGroup expects third-quarter 2015 earnings per share in the range of $1.50 to $1.58. Revenues are expected to fall 6% to 8%, reflecting a negative impact of about 13% from currency fluctuations.

Stocks that Warrant a Look

Here are some other companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:

American Eagle Outfitters, Inc. AEO has an Earnings ESP of +10% and a Zacks Rank #2 (Buy).

L Brands, Inc. LB has an Earnings ESP of +2.08% and a Zacks Rank #3.

The Children's Place, Inc. PLCE has an Earnings ESP of +1.54% and a Zacks Rank #3.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days . Click to get this free report >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

MANPOWER INC WI (MAN): Free Stock Analysis Report

AMER EAGLE OUTF (AEO): Free Stock Analysis Report

CHILDRENS PLACE (PLCE): Free Stock Analysis Report

L BRANDS INC (LB): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

MAN PLCE AEO

Other Topics

Earnings Stocks

Latest Markets Videos

Zacks

Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

Learn More