ManpowerGroup Inc. (MAN), a global leader in the employment services industry, is set to report its third-quarter 2014 results on Oct 21, 2014. Last quarter, it posted a positive surprise of 2.3%. Let us see how things are developing for to this announcement.
Factors Affecting the Quarter
Slow pace of recovery in Europe is likely to impact ManpowerGroup's financial performance this quarter. Moreover, after its strong financial performance last year, tough-year-over year comparisons will add to the woes. Fluctuations in currency exchange rates are also expected to negatively affect the top line.
Earnings Whispers
Our proven model does not conclusively project ManpowerGroup as likely to beat earnings this quarter. That is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold) for this to happen. This is not the case here, as you will see below.
Zacks ESP: ESP for ManpowerGroup is -2.00%. This is because the Most Accurate Estimate is pegged at $1.47 while the Zacks Consensus Estimate stands at $1.50.
Zacks Rank: ManpowerGroup currently has a Zacks Rank #4 (Sell) which combined with negative ESP makes prediction difficult.
We caution against stocks with a Zacks Rank #4 and 5 (Sell-rated stocks) going into an earnings announcement, especially when the company is witnessing negative estimate revisions.
Other Stocks to Consider
Here are some other companies you may want to consider as our model shows these to have the right combination of elements to post an earnings beat:
L Brands, Inc. (LB) has an Earnings ESP of +3.13% and a Zacks Rank #2.
Under Armour, Inc. (UA) has an Earnings ESP of +2.50% and a Zacks Rank #2.
The Home Depot, Inc. (HD) has an Earnings ESP of +0.89% and a Zacks Rank #2.
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