Analyst Sees Revenue Declines At Staffing Firms

HARTFORD, Conn. (AP) — Staffing companies Manpower Inc. and Robert Half International Inc. will likely report double-digit revenue declines in their third-quarter earnings releases, reflecting large job losses, an analyst said Wednesday.

Still, Barclays Capital analyst Gary Bisbee raised his price target for Manpower on the weak dollar and, increasing the price target for Robert Half, said its shares already account for a strong recovery.

Bisbee said in a client note Wednesday, he estimates a 30 percent decline in revenue year over year when Manpower, based in Milwaukee, releases its third-quarter results Oct. 21. However, he believes revenue should be higher than in the second quarter due to seasonal staffing and a "somewhat weaker" dollar.

"While the pace of job losses is slowing, job growth is needed for sustained profit recovery," he said.

Bisbee said he expects a weak rebound in 2010 and, as a result, does not see large revenue or per-share earnings to bounce back until 2011.

He raised his price target to $52.50 from $40, increased his earnings estimate this year to 50 cents per share from 49 cents and raised his 2010 estimate to $1 per share from 96 cents per share.