The 10-second takeaway
For the quarter ended March 31 (Q1), ManpowerGroup beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share grew significantly.
Gross margins dropped, operating margins increased, and net margins improved.
ManpowerGroup notched revenue of $5.10 billion. The 11 analysts polled by S&P Capital IQ looked for a top line of $4.97 billion on the same basis. GAAP reported sales were 0.5% higher than the prior-year quarter's $5.07 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.50. The 15 earnings estimates compiled by S&P Capital IQ predicted $0.35 per share. GAAP EPS of $0.50 for Q1 were 16% higher than the prior-year quarter's $0.43 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 16.6%, 30 basis points worse than the prior-year quarter. Operating margin was 1.8%, 10 basis points better than the prior-year quarter. Net margin was 0.8%, 10 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $5.36 billion. On the bottom line, the average EPS estimate is $0.74.
Next year's average estimate for revenue is $21.48 billion. The average EPS estimate is $2.98.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on ManpowerGroup is outperform, with an average price target of $52.80.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.