Manpowergroup (MAN) – Get the report from ManpowerGroup Inc. shares fell on Tuesday after the staffing services company reported lower-than-expected earnings for the third quarter.
Profit at the Milwaukee-based company climbed to $ 97.7 million, or $ 1.77 per share, in the last quarter, from $ 10.3 million, or 18 cents per share, a year earlier.
Adjusted earnings totaled $ 1.93 per share, beating FactSet analysts’ consensus of $ 1.91.
Revenue jumped 12% to $ 5.14 billion during the period, from $ 4.58 billion, but is below the analyst consensus of $ 5.3 billion.
Manpower stock recently traded at $ 106.15, down 6.2%. The stock has climbed 25% year-to-date through Monday amid a scorching job market. It has gained 3% in the past six months due to valuation concerns.
Manpower’s cost of services rose 11% to $ 4.29 billion, but its gross margin widened further to 16.6% from 15.8%.
“Our third quarter results reflect an ongoing global economic recovery, tempered by supply chain constraints and the continuing impact of the delta variant in various key markets,” Managing Director Jonas Pricing said in a statement.
“Global demand has remained strong as our clients continue to seek out skilled talent in a tight labor market. “
Manpower is forecasting earnings per share of $ 1.99 to $ 2.07 for the fourth quarter, framing analyst consensus of $ 2.04.
Ahead of the earnings report, Morningstar analyst Joshua Aguilar estimated the stock’s fair value at $ 113.
“Manpower will remain one of the largest recruiting companies in the world in a very fragmented industry,” he wrote in a comment.