On Friday, BMO Capital Markets updated their financial outlook on Manpower Inc. (NYSE:MAN), increasing the price target to $84.00 from the previous $81.00, while keeping a Market Perform rating on the stock. The staffing company's recent earnings report showed an adjusted earnings per share (EPS) that slightly exceeded expectations, attributed to a lower-than-anticipated tax rate.
Manpower's management indicated a level of stability in several major markets, including France, the UK, and Japan, during the earnings call. Additionally, the United States and Italy were described as experiencing "less-worse" trends, suggesting a potential easing of previous challenges in these regions.
The second quarter of 2024 margin guidance provided by Manpower was better than expected, particularly given the context of modest anticipation ahead of the earnings release. This guidance was positively received, as reflected in the company's share performance post-announcement.
Following the earnings report, BMO Capital Markets has adjusted their estimates upwards, resulting in the new price target. The raised target reflects the firm's response to the company's latest financial data and market performance indicators.
InvestingPro Insights
Following the recent financial outlook update by BMO Capital Markets on Manpower Inc. (NYSE:MAN), it's important to consider additional data and insights that could inform investor decisions. According to real-time metrics from InvestingPro, Manpower's market cap stands at $3.58 billion, with a forward P/E ratio for the last twelve months as of Q1 2024 at 19.01, indicating a potential reassessment of the company's earnings potential compared to the current P/E ratio of 69.14. The dividend yield as of the latest available data is an attractive 3.97%, supporting the company's reputation for consistent dividend payments over the past 30 years.
InvestingPro Tips highlight that Manpower's management has been proactively engaging in share buybacks and has a high shareholder yield, which could be a positive signal for investors looking for companies with shareholder-friendly practices. The company has also raised its dividend for 13 consecutive years, with a recent growth of 8.09% in dividends, underscoring its commitment to returning value to shareholders. Additionally, analysts project net income growth for the company this year, which may be a contributing factor to the positive sentiment surrounding the stock.
For investors seeking more in-depth analysis and additional tips on Manpower Inc., there are 11 more InvestingPro Tips available at: https://www.investing.com/pro/MAN. To access these insights and enhance your investment strategy, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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