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The staffing companies are having a better than expected earnings season. I just profiled Robert Half International (RHI) earlier today. One of its brethren, Manpower Group (MAN), reported earnings that easily beat expectations today as well. The company will continue to be challenged in Europe (2/3's of revenues) but the situation has stabilized over the quarter. However, domestically it might be even better positioned than RHI given the huge growth in part-time workers in the last monthly jobs report.

Key earnings highlights for MAN:

  • Earnings per share came in at 79 cents a share, beating estimates calling for 68 cents a share.
  • Revenue of $5.17B was $60mm above consensus expectations.
  • The company also provided upside guidance for Q4 with a range of 72 to 80 cents a share, above the current consensus of 70 cents a share.

Manpower Group provides workforce solutions and services worldwide. The company offers permanent, temporary, and contract recruitment services.

4 additional reasons MAN is offers solid value at under $36 a share:

  1. The stock is selling near the bottom of its five year valuation range based on P/E, P/S, P/CF and P/B.
  2. The company is selling just 14% above book value and also provides a 2.4% yield.
  3. The 13 analysts who cover the stock have a $45 a share price target on the shares, 25% above the current stock price.
  4. MAN appears to have solid technical support at just under the current price level (see chart).

(click to enlarge)

Source: Manpower: Another Play On An Improving Job Market