ManpowerGroup stock slides 19% on revenue miss, weak Q4 outlook

Investing.com -- On Thursday, ManpowerGroup Inc. (NYSE: MAN) presented third quarter results which showed revenue falling short of expectations and fourth quarter guidance below analyst estimates.

Shares of the workforce solutions company tumbled 19.75% in pre-market trading following the results.

The company reported adjusted earnings per share of $1.01 for the third quarter, matching analyst consensus of $1.01. However, revenue of $4.84 billion missed the estimate of $4.85 billion, though it represented a 4% increase from $4.63 billion in the prior year period. On a constant currency basis, revenue grew 5% YoY, driven by strength in the Manpower brand, particularly in the United States.

For the fourth quarter, ManpowerGroup expects EPS between $1.03 and $1.13. The midpoint of $1.08 falls below the analyst consensus of $1.10.

"We delivered another quarter of consistent performance and strong execution as momentum continues across the organization," said Jonas Prising, ManpowerGroup Chair & CEO. "Our Manpower brand continues to lead the way, with notable share gains in the U.S."

The company reported GAAP net earnings of $0.71 per diluted share, compared to $0.38 per share in the prior year period. The current quarter included restructuring costs, strategic transformation program costs, a business sale adjustment, and Argentina hyperinflationary related non-cash currency translation losses, which negatively impacted earnings per share by $0.30.

U.S. revenue increased 5.5% YoY to $728.8 million, while Northern Europe showed strong improvement with operating unit profit of $7.5 million compared to a loss of $14.9 million in the prior year period. France revenue declined 3.5% to $1.13 billion.

The company announced that Becky Frankiewicz will become CEO on January 1, 2027, with Jonas Prising transitioning to Executive Chair.

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