ManpowerGroup Stock Gains After Q4 Earnings Beat, Solid Q1 Outlook

ManpowerGroup Inc. MAN reported fourth-quarter FY21 revenue growth of 6.5% year-over-year to $5.38 billion, beating the consensus of $4.77 billion.
Revenue from services: Americas $1.22 billion (+20% Y/Y), Southern Europe $2.38 billion (+2.3% Y/Y), Northern Europe $1.18 billion (+7.7% Y/Y) and APME $622.6 million (+0.9% Y/Y).
All brands recorded revenue growth during the quarter, with Experis recording 33% revenue growth, Talent Solutions 10%, and Manpower 1%.
Q4 Adjusted EPS was $2.20, beating the consensus of $1.80.
The gross margin expanded by 140 bps to 17.2%. The operating income increased by 20.4% Y/Y to $166.6 million, and the margin expanded by 36 bps to 3.1%.
ManpowerGroup generated cash from operating activities for FY21 of $644.8 million, compared to $936.4 million a year ago. The company held cash and equivalents of $847.8 million as of December 31, 2021.
The company repurchased $60 million of common stock during the quarter; and paid down $75 million incremental borrowings used for the ettain acquisition.
Outlook: ManpowerGroup expects Q1 EPS of $1.56 - $1.64, versus the consensus of $1.34. The company's outlook includes an estimated unfavorable currency impact of 10 cents.
Price Action: MAN shares are trading higher by 3.42% at $108.46 on the last check Tuesday.

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