ManpowerGroup Inc. MAN is set to report fourth-quarter results before the opening bell on Feb 3. In the third quarter, the company surpassed the Zacks Consensus Estimate by a margin of 20%. Notably, the company beat the Zacks Consensus Estimate in all of the last four quarters, with an average earnings surprise of 8.2%. Now, let’s see whether the company will be able to keep its earnings streak alive?
Earnings Beat in the Cards
Our proven model shows that ManpowerGroup is likely to beat earnings estimates this quarter. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1, 2 or 3 for this to happen. The Most Accurate estimate stands at $1.52 and the Zacks Consensus Estimate is pegged at $1.51. So the ensuing +0.66% ESP and the company’s Zacks Rank #3 (Hold) make us reasonably confident of an earnings beat.
Factors Influencing this Quarter
ManpowerGroup is continuously making significant investments to expand permanent recruitment solutions offerings. Management continues to believe that global recovery is on track but at a slow and uneven pace. As a result, management is focusing on internal drivers like disciplined pricing and tough control on productivity to ensure uninterrupted profits. Previously, the company had acquired 7S Group in Germany as well as Greythorn divisions in Australia and Singapore. Moreover, it acquired the desk-side and end user support division of Atos, through Proservia, its French subsidiary. We believe these acquisitions will drive the company’s top line higher.
Other Stocks Poised to Beat Earnings Estimates
Here are some other companies you may want to consider as our model shows that these have the right combination of elements to post an earnings beat:
Express Inc. EXPR has an Earnings ESP of +1.56% and a Zacks Rank #1 (Strong Buy).
Foot Locker, Inc. FL has an Earnings ESP of +0.89% and a Zacks Rank #2 (Buy).
The Home Depot, Inc. HD has an Earnings ESP of +0.91% and a Zacks Rank #3.
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