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Staffing Company
ManpowerGroup
Inc.
MAN -3.78%
The outlook was mixed on Friday, as the US labor market is still tense and political uncertainties in Europe are prompting employers to rethink their short-term hiring plans.
New governments in Italy and Spain, upcoming elections in several European countries and the uncertainty surrounding Brexit have caused employers more serious concerns than expected, said the Director General, Jonas Prizing, at the meeting. 39, a conference call with analysts. Despite these hurdles, Prizing said the company remains confident in Europe's long-term prospects, where it generates two-thirds of its turnover, and that the region is still lagging behind. economic growth cycle of the United States.
In the last quarter, the Milwaukee-based company's revenue decreased 0.8% from the previous year, to $ 5.42 billion, under the effect weakness in the United States, France and the United Kingdom. However, Jack McGinnis, chief financial officer of ManpowerGroup, said it was an improvement over the second quarter and that it was gradually improving.
ManpowerGroup executives said it was difficult for US employers to find qualified employees for vacancies. According to the Department of Labor, the nation's unemployment rate fell to 3.7% in September, reaching its lowest level since December 1969.
"It's clear that the demand is good in the market, but it's harder to find that talent," McGinnis said at a conference call.
Shares of ManpowerGroup fell 4.24% to $ 75.03 in trading on Friday. Recruitment and employment service providers such as ManpowerGroup and
Robert Half International
Inc.
have seen their stock prices fall in double digits over the last three months.
"Manpower has been underperforming the US market for quite some time," said Jeffrey Silber, an analyst at BMO Capital Markets. "Many companies are aggressively recruiting full-time or part-time workers and competing with staffing companies."
ManpowerGroup executives said at the call that there had been some stabilization in some parts of Europe as the fourth quarter approached. "We still believe that labor markets are still strong in many of these European markets and that the demand for talent remains strong," said Mr Prizing.
In total, ManpowerGroup's third-quarter earnings increased 17 percent year-over-year to $ 158 million, or $ 2.43 per share, as a lower provision for income taxes offset the decrease. revenues and higher selling and administrative expenses.
For the fourth quarter, ManpowerGroup is forecasting earnings per share of between $ 2.15 and $ 2.23. The forecast included a one-time charge of 27 cents per share related to its French operations and an impact of 5 cents per share due to adverse movements in foreign exchange rates. Analysts surveyed by Refinitiv expected an adjusted profit of $ 2.50 for the fourth quarter.
Write to Patrick Thomas at [email protected]
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