ManpowerGroup, Inc. MAN reported mixed first-quarter 2025 results. Earnings missed the Zacks Consensus Estimate, but revenues beat the same. The stock hasn’t moved much since the earnings release on April 17.

Quarterly adjusted EPS came in at 44 cents, which missed the Zacks Consensus Estimate by 15.4% and decreased 53.2% year over year. (See the Zacks Earnings Calendar to stay ahead of market-making news.)

ManpowerGroup Inc. Price, Consensus and EPS Surprise

ManpowerGroup Inc. price-consensus-eps-surprise-chart | ManpowerGroup Inc. Quote

Revenues of $4.1 billion surpassed the consensus mark by 3.6% but decreased 7.1% from the year-ago quarter.

MAN: Other Quarterly Details

Revenues from America of $1.1 billion were above our expectations but tumbled 2% year over year on a reported basis and increased 5.3% at cc. In the United States, revenues reached $688.8 million, surpassing our estimate of $642.5 million and rose 1.2% year over year. In the Other Americas subgroup, revenues of $367.9 million beat our projection of $333.4 million. These revenues increased 3.3% on a reported basis but increased 13.1% at cc.

Revenues from Southern Europe of $1.83 billion were above our projection of $1.82 billion, declining 7.4% on a reported basis and 4.8% at cc. Revenues from France were $965.7 billion, below our expectations. These revenues were down 12.2% on a reported basis and 9.5% at cc. Revenues from Italy amounted to $397.8 million, surpassing our estimate of $373 million, which decreased 1.6% on a reported basis and increased 1.4% at cc. The Other Southern Europe sub-segment generated revenues of $470.5 million, which beat our expectations of $419.7 million. They were down 1.5% year over year on a reported basis and up 0.7% at cc.

Northern Europe revenues declined 16% on a reported basis and 14.3% at cc to $730.8 million, outpacing our estimate of $728.7 million. APME revenues totaled $476.4 million, surpassing our estimate of $442.5 million, down 11% on a reported basis and down 9.2% at cc.

MAN’s Operating Performance

The company registered an operating profit of $28.2 million, down 57.2% year over year on a reported basis and 52.6% at cc. The operating profit margin was 0.69%.

Key Balance Sheet & Cash Flow Figures of MAN

ManpowerGroup exited the quarter with a cash and cash equivalent balance of $395 million compared with $604.8 million in the first quarter of 2024. Long-term debt at the end of the quarter was $971.4 million compared with $968.9 million in the preceding year’s March-end quarter.

The company used $153.2 million of cash from operating activities. Capital expenditures were $13.7 million. It spent $25 million on repurchasing common stock in the quarter.

MAN’s Q2 Guidance

Management guided second-quarter EPS in the range of 65-75 cents per share, with a midpoint of 70 cents, which is below the current Zacks Consensus Estimate of $1 per share. The company’s guided range includes an estimated favorable currency impact of 3 cents and a 46.5% effective tax rate.

The company currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Stocks to Consider

Some better-ranked stocks from the broader Zacks Business Services sector are Maximus MMS and Broadridge Financial Solutions BR.

Maximus sports a Zacks Rank of #1 at present.  MMS has an encouraging earnings surprise history, having outpaced the Zacks Consensus estimate in three of the trailing four quarters and missing once. The average beat was 13.3%.

Broadridge currently carries a Zacks Rank #2 (Buy).

BR has an encouraging earnings surprise history, having outpaced the Zacks Consensus estimate in each of the trailing four quarters. The average beat was 3.2%.

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ManpowerGroup Inc. (MAN) : Free Stock Analysis Report

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This article originally published on Zacks Investment Research (zacks.com).

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