Manpower Powers Through Q3: Fool by Numbers

On Oct. 17, Manpower (NYSE: MAN  ) released third-quarter earnings for the period ended Sept. 30.

  • Favorable foreign currency translations added $0.08 to the diluted earnings-per-share figure.
  • The company's strong geographic presence and business portfolio were evident in the 15% rise in revenue.
  • While management showed slight concern for the near future, it doesn't believe the company will be significantly affected and is anticipating full-year diluted earnings per share of $1.50 to $1.54.
  • Manpower is a three-star stock (out of a possible five) in our CAPS community, but lags behind rivals Kforce (Nasdaq: KFRC  ) and Labor Ready (NYSE: LRW  ) , which both boast four stars.

(Figures in millions, except per-share data)

Income Statement Highlights

Q3 2007

Q3 2006

Change

Sales

$5,295.4

$4,590.0

15.4%

Net Profit

$131.7

$97.0

35.8%

EPS

$1.57

$1.12

40.2%

Diluted Shares

84.1

86.7

(3%)

*Includes income from continuous operations.Get back to basics with a look at the income statement.

Margin Checkup

Q3 2007

Q3 2006

Change*

Gross Margin

18.4%

17.5%

0.9

Operating Margin

4.2%

3.6%

0.6

Net Margin

2.5%

2.1%

0.4

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q3 2007

Q3 2006

Change

Cash + ST Invest.

$538.8

$484.5

11.2%

Accounts Rec.

$4,537.3

$3,772.1

20.3%

Liabilities

Q3 2007

Q3 2006

Change

Accounts Payable

$1,011.3

$883.6

14.5%

Long-Term Debt

$855.3

$759.9

12.6%

Learn the ways of the balance sheet.

Cash Flow Highlights

YTD 2007

YTD 2006

Change

Cash From Ops.

$299.2

$226.1

32.3%

Capital Expenditures*

$166.0

$55.1

201.3%

Free Cash Flow

$133.2

$171.0

(22.1%)

*Includes business acquisitions.

Free cash flow is a Fool's best friend.

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