October 22, 2021 – ManpowerGroup / (NYSE:MAN) posted third quarter revenues of 5.1 billion, a 12 percent increase from the same period last year. This misses the Zacks Consensus Estimate by 2.92 percent. This compares to year-ago revenues of $4.58 billion. The company has topped consensus revenue estimates three times over the last four quarters. ManpowerGroup reported net earnings of $1.77 per diluted share for the three months ended September 30, 2021 compared to $0.18 per diluted share in the prior year period. Net earnings in the quarter were $97.7 million compared to $10.3 million a year earlier.
The current year quarter included restructuring costs for its Mexico business and ettain group acquisition costs. The restructuring and acquisition costs reduced earnings per share by $0.16 in the current quarter. Excluding the restructuring and acquisition costs, earnings per share was $1.93 per diluted share in the quarter. The prior year period included restructuring costs and other special items which decreased earnings per share by $1.02.
“Our third quarter results reflect a continued global economic recovery, tempered by supply chain constraints and the ongoing impact of the Delta variant in various key markets,” said Jonas Prising, chairman and CEO of ManpowerGroup. “Global demand remained strong as our clients continue to look for skilled talent in a tight labor market and leverage our capabilities and workforce solutions expertise that help them achieve their desired business outcomes.”
“We also accelerated our business mix diversification with the recent completion of our acquisition of ettain group,” he said. “This is a core part of our strategy to advance our global expansion of our Experis IT resourcing and services business and we are delighted to formally welcome the ettain team into our Experis business and ManpowerGroup family.”
New Board Members
ManpowerGroup recently announced that Jean-Philippe Courtois, executive vice president of Microsoft Corp. and president, Microsoft Global Sales, Marketing and Operations; and William P. Gipson, a retired executive at Procter & Gamble, who most recently served as president of enterprise packaging transformation and chief diversity and inclusion officer, have been elected to the company’s board of directors.
“We are delighted to welcome Jean-Philippe and William to the ManpowerGroup board – two impressive executives with significant global experience and innovation acumen,” said Mr. Prising. “Jean-Philippe brings a breadth of expertise in digital transformation, together with a passion for leveraging technology to drive a positive societal impact while enabling people and organizations all around the global to achieve their potential. His extensive experience aligns well with our strategic priorities and will be a great asset as we accelerate our journey to digitize, diversify and innovate.”
“William has an impressive innovation track record driving business transformation and connecting to consumers at scale,” Mr. Prising said. “His deep set of perspectives and experiences leading across different businesses, industries and geographies together with his commitment to accelerating innovation at scale is well aligned with our own priorities and purpose.”
“Including a full quarter impact of the ettain group acquisition, we anticipate diluted earnings per share in the fourth quarter will be between $1.99 and $2.07, which includes an estimated unfavorable currency impact of four cents,” said Mr. Prising. “Our guidance also includes an estimated impact from the ettain group acquisition of 13 cents and excludes acquisition transaction and integration costs.”
Shares in ManpowerGroup were down 6.31 percent to $105.99 upon the release its numbers and they were 15.26 percent below their 52-week high. The company had a market cap of $6.14 billion.
Contributed by Scott A. Scanlon, Editor-in-Chief; Dale M. Zupsansky, Managing Editor; and Stephen Sawicki, Managing Editor – Hunt Scanlon Media