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Manpower Shares Drop as Revenue Trails Analyst Forecasts

Manpower's revenue jumped 12% to $5.14 billion but lagged the FactSet analyst consensus of $5.3 billion.
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ManpowerGroup  (MAN) - Get ManpowerGroup Inc. Report shares fell on Tuesday after the staffing-services company reported weaker-than-expected revenue for the third quarter.

The Milwaukee company’s profit soared to $97.7 million, or $1.77 a share, in the latest quarter from $10.3 million, or 18 cents a share, a year earlier. 

Adjusted earnings totaled $1.93 a share, topping the FactSet analyst consensus of $1.91.

Revenue jumped 12% to $5.14 billion in the period from $4.58 billion but trailed the analyst consensus of $5.3 billion.

Manpower stock recently traded at $106.15, down 6.2%. The stock climbed 25% year to date through Monday amid a torrid labor market. It has gained 3% in the past six months amid valuation concerns.

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Manpower’s cost of services rose 11% to $4.29 billion, but its gross margin still widened to 16.6% from 15.8%.

"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,” Chief Executive Jonas Prising said in a statement.

“Global demand remained strong as our clients continue to look for skilled talent in a tight labor market.”

Manpower forecasts earnings per share of $1.99 to $2.07 for the fourth quarter, bracketing the analyst consensus of $2.04.

Prior to the earnings report, Morningstar analyst Joshua Aguilar put fair value at $113 for the stock. 

“Manpower will remain one of the largest global staffing firms in a highly fragmented industry,” he wrote in a commentary.