ManpowerGroup (NYSE:MAN) reported second-quarter results that topped Wall Street expectations, with stronger earnings and revenue helping drive its shares more than 8% higher in premarket trading.
The workforce solutions company posted adjusted earnings of $0.99 per share, exceeding the analyst consensus of $0.95. Quarterly revenue reached $4.9 billion, ahead of expectations of $4.73 billion and representing growth of 8% from a year earlier, or 6% on a constant-currency basis.
Broad-based demand supports revenue growth
The company said revenue growth was fueled by strong hiring activity in the United States, Latin America and several European markets, including Italy, Spain, Poland and Norway.
Reported earnings per share totaled $1.13, reflecting a $0.14 per-share benefit from the sale of the Jefferson Wells U.S. business along with other items.
The Manpower brand recorded particularly strong revenue growth during the quarter, while Experis continued to improve, led by stronger performance in the U.S. market.
Cost discipline boosts profitability
Talent Solutions also delivered sequential improvement, supported by recruitment process outsourcing (RPO) and continued solid growth in managed service provider (MSP) services.
Higher gross profit, combined with lower selling and administrative expenses, contributed to a meaningful year-over-year improvement in profitability.
“In the second quarter we delivered strong results with revenues ahead of expectations,” said Jonas Prising, ManpowerGroup Chair and CEO. “Results reflect good execution across our brands and markets, continued cost discipline and improving demand.”
Company outlines third-quarter expectations
For the third quarter, ManpowerGroup expects diluted earnings per share to range between $0.96 and $1.06.
The forecast includes an estimated $0.02 per-share headwind from foreign exchange movements and assumes an effective tax rate of 44%.
During the quarter, the company also completed the sale of its Jefferson Wells U.S. business for $100 million, generating net cash proceeds of approximately $88 million.
ManpowerGroup stock price
