ManpowerGroup Posts 41 Percent Revenue Increase

July 22, 2021 – ManpowerGroup / (NYSE:MAN) posted first quarter revenues of $5.3 billion, an increase of 41 percent from the same period a year ago. This surpassed the Zacks Consensus Estimate by 1.99 percent. Revenue in the U.S. was $629 million, representing 22 percent increase compared to the prior year. Financial results in the quarter were impacted by the weaker U.S. dollar relative to foreign currencies compared to the prior year period, resulting in a 13 cents positive impact to earnings per share in the quarter compared to the prior year.

“Our second quarter results reflect an improving global economic environment and increased demand for our services across our key markets and brands,” said Jonas Prising, chairman and CEO of ManpowerGroup. “As restrictions continued to ease worldwide, we saw the benefit of our diversified portfolio of services and workforce solutions. Our Manpower business rebounded strongly, our Experis business improved significantly during the quarter and our talent solutions offerings continued to deliver against the strong demand for global workforce solutions. We also made significant progress in the ongoing execution of our strategic initiatives, particularly in the implementation of new technology across the globe.”

The Milwaukee, WI-based recruiting company recorded earning of $111.6 million, or $2.02 per diluted share, compared to net earnings of $64.4 million, or $1.10 per diluted share, a year ago.

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.”

Looking Ahead

“We are encouraged by the current momentum that we are experiencing across our offerings and confident in our team’s ability to continue to deliver value to all our stakeholders,” Mr. Prising said. “We anticipate diluted earnings per share in the third quarter will be between $1.86 and $1.94, which includes an estimated favorable currency impact of four cents.”

In the third quarter, we expect ongoing underlying improvement in revenue growth for the U.S. in the range of 11 percent to 15 percent year-over-year,” said Jack McGinnisexecutive vice president and chief financial officer of ManpowerGroup. Comparing estimated third quarter revenues to pre-crisis levels in constant currency, this represented a two percent decline compared to 2019 levels in the third quarter using the midpoint of our guidance.”

Manpower shares have added about 23.5 percent since the beginning of the year versus the S&P 500’s gain of 13.4 percent.

Contributed by Scott A. Scanlon, Editor-in-Chief; Dale M. Zupsansky, Managing Editor; and Stephen Sawicki, Managing Editor – Hunt Scanlon Media

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