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Mar 31, 2024

ManpowerGroup Q1 2024 Earnings Report

ManpowerGroup's financial performance declined in Q1 2024 due to challenging environments in North America and Europe, but experienced solid demand in Latin America and Asia-Pacific.

Key Takeaways

ManpowerGroup reported a decrease in revenue by 7% to $4.4 billion and net earnings per diluted share decreased to $0.81, compared to $1.51 in the prior year period. The company faced challenges in North America and Europe, while Latin America and Asia-Pacific regions showed solid demand. The company anticipates diluted earnings per share in the second quarter will be between $1.24 and $1.34.

Revenues decreased to $4.4 billion, a 7% decrease as reported, or 5% on a constant currency basis.

Challenging environments persisted in North America and Europe, while Latin America and Asia-Pacific showed solid demand.

Gross profit margin was reported at 17.3%, or 17.5% as adjusted, with strong staffing margins and stable permanent recruitment trends.

The company repurchased $50 million of common stock during the quarter.

Total Revenue
$4.4B
Previous year: $4.75B
-7.3%
EPS
$0.94
Previous year: $1.61
-41.6%
Gross Profit
$764M
Previous year: $863M
-11.5%
Cash and Equivalents
$605M
Previous year: $707M
-14.4%
Free Cash Flow
$104M
Previous year: $111M
-6.1%
Total Assets
$8.49B
Previous year: $8.89B
-4.5%

ManpowerGroup

ManpowerGroup

ManpowerGroup Revenue by Geographic Location

Forward Guidance

ManpowerGroup anticipates diluted earnings per share in the second quarter will be between $1.24 and $1.34, which includes an estimated unfavorable currency impact of 7 cents and excludes unfavorable operating losses for the run-off Proservia Germany business estimated at 8 cents. Our guidance excludes any restructuring costs and any Argentina related impact of non-cash currency translation losses.

Challenges Ahead

  • Unfavorable currency impact of 7 cents.
  • Unfavorable operating losses for the run-off Proservia Germany business estimated at 8 cents.
  • Economic and geopolitical uncertainty
  • Trends in labor demand
  • Any residual costs resulting from the wind-down of the Proservia business in Germany and the Company’s strategic initiatives and technology investments

Revenue & Expenses

Visualization of income flow from segment revenue to net income