ManpowerGroup stock drops toward 6-month low after earnings miss, as employers are hiring more selectively
Shares of ManpowerGroup
MAN,
slumped 4.4% toward a six-month low in premarket trading Thursday, after the headhunter reported first-quarter results that fell short of expectations and provided a downbeat outlook, citing a “challenging operating environment in the U.S. and Europe.” Net income fell to $77.8 million, or $1.51 a share, from $91.6 million, or $1.68 a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of $1.61 missed the FactSet consensus of $1.63. Revenue declined 7.6% to $4.75 billion, below the FactSet consensus of $4.81 billion. “Despite a softening demand environment for our brands, labor markets remained strong during the first quarter,” said Chief Executive Officer Jonas Prising. “Employers are intent on holding on to the staff they have and are hiring new talent more selectively at a measured pace.” For the second quarter, the company expects EPS of between $1.58 and $1.68, which compares with the FactSet consensus of $1.84. The stock has shed 4.5% year to date through Thursday, while the S&P 500
SPX,
has gained 8.2%.
