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Despite the beat on EPS, the company’s revenue for the quarter was $4.4 billion, slightly below the consensus estimate of $4.44 billion and representing a 7% decline from the $4.752 billion reported in the same quarter last year.
The global staffing firm faced a challenging environment in North America and Europe but experienced solid demand in Latin America and the Asia-Pacific region.
ManpowerGroup’s gross profit margin stood at 17.5% on an adjusted basis, while the company managed to reduce selling, general, and administrative expenses (SG&A) by 6% year-over-year (YoY) in reported terms and 5% in constant currency.
ManpowerGroup’s Chairman & CEO, Jonas Prising, commented on the quarter’s performance, stating, “Employers in North America and Europe remain cautious as they wait for signs that the economic environment is on a sustainable path of improvement. In some of those markets demand for staffing and permanent recruitment stabilized at lower levels, while demand across Latin America and Asia Pacific Middle East remained solid.”
Looking ahead, ManpowerGroup anticipates adjusted diluted EPS for the second quarter to be between $1.24 and $1.34, factoring in an estimated unfavorable currency impact of 7 cents and excluding operating losses from the run-off Proservia Germany business estimated at 8 cents. The midpoint of this guidance range, $1.29, is yet to be compared to the analyst consensus as it was not provided.
During the quarter, the company also repurchased $50 million of common stock and reported strong cash flow. Despite the revenue decline, the company’s efforts to manage costs and maintain strong staffing margins reflect a degree of resilience in its operations. ManpowerGroup’s financial position remains solid, with cash and cash equivalents totaling $604.8 million as of March 31, 2024.
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