We expect ManpowerGroup Inc. MAN to beat estimates when it reports first-quarter 2015 results on Apr 21. In the last quarter, it had posted a positive earnings surprise of 2.8%. Let’s see how things are shaping up for this announcement.
Why a Likely Positive Surprise?
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. ManpowerGroup has the right combination of the two key components.
Zacks ESP: ManpowerGroup currently has an Earnings ESP of +1.27%. This is because the Most Accurate estimate stands at 80 cents, while the Zacks Consensus Estimate is pegged at 79 cents.
Zacks Rank: ManpowerGroup carries a Zacks Rank #3 (Hold). Conversely, the Sell-rated stocks (Rank #4 and 5) should never be considered going into an earnings announcement.
ManpowerGroup’s Zacks Rank #3 and ESP of +1.27% make us reasonably confident of a positive earnings beat.
What is Driving the Better-than-Expected Earnings?
The improving U.S economy has given a boost to hiring plans. Moreover, management is hopeful that falling crude prices and launch of stimulus program by ECB will aid in revival of the European economy. Nevertheless, to shield itself from the uneven economic recovery, management is focusing on internal drivers like disciplined pricing and tough productivity administration to ensure uninterrupted profitability.
Other Stocks that Warrant a Look
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:
Columbia Sportswear Company COLM has an Earnings ESP of +5.71% and a Zacks Rank #1 (Strong Buy).
The New York Times Company NYT has an Earnings ESP of +12.50% and a Zacks Rank #3.
V.F. Corporation VFC has an Earnings ESP of +4.41% and a Zacks Rank #3.
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