Manpower, Inc. (MAN) just reported a great quarter that lifted shares to a new multi-year high. With an average earnings surprise of 39% over the last four quarter and bullish 35% growth projection, this Zacks #1 rank stock is a momentum keeper.
Company Description
Manpower Inc. provides employment services worldwide. The company was founded in 1948 and has a market cap of $5.43 billion.
With the domestic and global employment scene showing modest signs of improvement, Manpower has been there to capitalize. That showed up in the company’s Q1 results from late April that came in ahead of expectations.
First-Quarter Results
Revenue for the period was up 24% from last year to $5.1 billion. Earnings also looked great, coming in at 43 cents, 34% ahead of the Zacks Consensus Estimate, where the company has an average earnings surprise of 39% over the last four quarters.
Although Manpower already has a strong international presence, it announced that it has acquired an IT sourcing company with 5 locations in India that it believes will help it capitalize on the growing Indian and Asia/Pacific markets.
Financial Profile
Moving forward, Manpower will continue to benefit from its strong balance sheet, with cash and short-term investments of $650 million against total debt of $746 million.
Estimates
We saw some really solid movement in estimates off the good quarter, with the current year adding 28 cents to $3.15 while the next-year estimate jumped 21 cents to $4.24, a bullish 35% growth projection.
But in spite of the gains, the valuation picture still looks solid, with a PEG ratio of .6, well below the benchmark for value of 1.
12-Month Chart
On the chart, MAN jumped to a new multi-year high on the good quarter and continues to trade in elevated territory. Look for support from the long-term trend on any weakness, take a look below.
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Michael Vodicka is the Momentum Stock Strategist for Zacks.com. He is also the Editor in charge of the Zacks Momentum Trader Service.
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