MILWAUKEE - ManpowerGroup (NYSE:MAN) reported third-quarter results that met earnings expectations but showed continued weakness in key markets, sending shares down 4.24% in early trading.
The global staffing company posted adjusted earnings of $1.29 per share, in line with analyst estimates. Revenue fell 3.1% year-over-year to $4.53 billion, slightly above the consensus forecast of $4.49 billion.
ManpowerGroup cited ongoing challenges in North America and Europe during the quarter, with revenues in those regions declining 5.5% and 9.4% respectively in constant currency. This was partially offset by growth in Latin America and Asia-Pacific.
"The operating environment has not changed significantly through the third quarter and employers in North America and Europe remain cautious," said Jonas Prising, ManpowerGroup Chairman & CEO. "Although demand levels have largely stabilized at lower levels in these markets, during the quarter we have taken additional cost actions based on the extended duration of the current operating environment."
The company's gross profit margin contracted to 17.3% from 17.6% a year ago. ManpowerGroup said staffing margins remained solid while permanent recruitment levels were stable.
For the fourth quarter, ManpowerGroup expects earnings per share between $0.98 and $1.08, below the current analyst consensus of $1.41.
The weaker-than-expected outlook and continued softness in key markets appeared to weigh on investor sentiment, despite the in-line earnings and slight revenue beat. ManpowerGroup shares were down 4.24% following the report.
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