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The staffing companies are having a better than expected earnings season. I just profiled Robert Half International (NYSE:RHI) earlier today. One of its brethren, Manpower Group (NYSE: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