Q124 MAN manpower earnings

earnings summary

Here is a summary of the key points from ManpowerGroup’s Q1 2024 earnings call, with an emphasis on earnings results, future guidance, themes/trends, and market conditions:

Earnings Results:

• Q1 revenue was $4.4B, down 5% YoY in constant currency (-6% adjusted). Reported EBITA was $74M; adjusted EBITA was $80M, down 38% YoY. Reported EPS of $0.81; adjusted EPS of $0.94, down 39% YoY. Results were in-line with guidance.

Guidance:

• For Q2, ManpowerGroup expects EPS of $1.24-1.34 (excluding Germany Proservia impact), constant currency revenue decline of 2-6% (-4% midpoint), and adjusted EBITA margin down 20bps YoY at midpoint. Outlook remains challenging in North America and Europe.

Themes & Trends:

• Demand cooling and uncertainty persists, causing employer caution in hiring and spending. However, skilled talent remains critical and shortages persist in some areas despite slowing.
• Cost discipline is a focus amid lower revenue. SG&A declined 5% YoY, reflecting a 10% headcount reduction. No restructuring in Q1. Investments in digital transformation progressing to drive future efficiencies.
• By segment: Americas revenue -1% CC, Southern Europe -5%, Northern Europe -12% (-8% ex. Germany), APME -4% organic CC. Key markets like U.S., UK, France seeing stabilization at low levels.
• Opportunities expected in digital transformation, AI adoption, and green transition driving demand for specialized skills. Diversification helping offset softness.

Market Conditions:

• Labor markets cooling but remain strong from historical view. Employers cautious but holding onto workforces. Demand remains for certain skilled workers despite broader slowdown.
• By industry, manufacturing ex-auto sluggish, as is enterprise tech and financial services. Some bright spots in auto (Europe), aerospace, construction, Healthcare IT project work.
• Competitive environment intense but rational. Pricing/margins holding up.

Sentiment: The overall sentiment is cautiously optimistic. While acknowledging near-term headwinds from economic uncertainty and cooled demand, management sees encouraging signs like stabilization in key markets, albeit at low levels. They are positioning to capture opportunities from digital transformation and skills shifts longer-term through strategic investments and diversification. Cost discipline and productivity initiatives are underway to navigate softness and emerge stronger. The tone reflects balanced realism about challenges with underlying confidence in ManpowerGroup’s positioning for an eventual upturn.