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MILWAUKEE - ManpowerGroup (NYSE:MAN) reported first quarter earnings that fell short of analyst expectations on Thursday.
The company’s shares were down -8.30% in premarket trading following the release.
The global staffing company posted adjusted earnings per share of $0.44 for the quarter, missing the consensus estimate of $0.55. Revenue came in at $4.09 billion, surpassing expectations of $3.98 billion but declining 7% YoY.
ManpowerGroup saw revenues decrease 5% on a constant currency basis and 2% organically compared to the prior year period. The company cited challenging operating conditions in Europe and North America, while noting good growth in Latin America and Asia Pacific.
"During the quarter, we saw good growth in Latin America and Asia Pacific while operating conditions remained challenging in Europe and North America," said Jonas Prising, ManpowerGroup Chair & CEO.
Gross profit margin was 17.1%, reflecting solid staffing margins across most major markets but slightly weaker permanent recruitment activity. The company took additional restructuring actions in the quarter to adjust its cost base.
For the second quarter, ManpowerGroup expects diluted earnings per share between $0.65 and $0.75, including an estimated $0.03 favorable currency impact.
The significant stock decline reflects investor disappointment with the earnings miss and ongoing headwinds in key markets. ManpowerGroup will need to demonstrate progress on cost controls and growth initiatives to regain market confidence.
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