Why Workforce Solutions Company ManpowerGroup's Shares Are Trading Lower Today

ManpowerGroup MAN shares are trading lower after the company reported third-quarter FY23 results.

Revenues from services declined 2.6% year-on-year to $4.676 billion, missing the analyst consensus of $4.70 billion. Revenues fell 5% at constant currency. 

Challenging North American and European operating environments are the primary cause of revenue decline.

Gross profit decreased 6.4% Y/Y to $821.9 million with a gross margin of 17.6%.

Financial results in the quarter were also impacted by the weaker U.S. dollar relative to foreign currencies compared to the prior year period.

Selling and administrative expenses increased 4.9% for the quarter to $752.1 million.

Adjusted EPS of $1.38 beat the analyst consensus of $1.35.

The company exited the quarter with cash and equivalents worth $571.1 million. 

"While the current operating environment is difficult for our industry, we are confident in our ability to adjust to the existing reality while being ready to pivot quickly when the situation improves. We executed various additional cost actions during the third quarter and our experienced management team continues to drive our key Diversification, Digitization and Innovation initiatives which are strengthening ManpowerGroup for the future," said Chairman & CEO Jonas Prising.

Outlook: The company sees Q4 EPS of $1.17-$1.27, against the analyst consensus of $1.36. The company's guidance includes an estimated unfavorable currency impact of 1 cent and excludes expected restructuring costs and any Argentina-related impact of non-cash currency translation losses.

Price Action: MAN shares are trading lower by 4.21% at $68.21 on the last check Thursday.