What Happened?
Shares of workforce solutions provider ManpowerGroup (NYSE: MAN) jumped 3.2% in the morning session after the company reported second-quarter adjusted earnings that surpassed analyst expectations, overshadowing a reported net loss caused by one-time charges.
While the company posted a net loss of $67.1 million, or $1.44 per share, this was primarily due to a non-cash goodwill impairment charge of $89 million and other restructuring costs. When excluding these items, ManpowerGroup's adjusted earnings per share (EPS) came in at $0.78. This figure comfortably beat the consensus analyst forecast of $0.69 per share, signaling to investors that the company's core operations are performing better than anticipated. Looking ahead, the company provided guidance for the third quarter, expecting diluted earnings per share to be between $0.77 and $0.87. The positive market reaction suggests investors are focusing on the underlying operational strength and the forward-looking guidance rather than the headline loss.
After the initial pop the shares cooled down to $43.56, up 1% from previous close.
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What Is The Market Telling Us
ManpowerGroup’s shares are somewhat volatile and have had 11 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 3 months ago when the stock dropped 15.9% on the news that the company reported underwhelming first quarter 2025 results: Its EBITDA and EPS missed Wall Street's expectations.
On a brighter note, revenue came in ahead of expectations. However, this modest beat was not enough to offset the significant drop in earnings, as profits were pulled down by higher restructuring costs and tax charges.
Looking ahead, EPS guidance for next quarter missed significantly, indicating continued margin pressure and limited visibility on near-term recovery, particularly in Europe. Overall, this was a weaker quarter.
ManpowerGroup is down 23.6% since the beginning of the year, and at $43.56 per share, it is trading 43.5% below its 52-week high of $77.13 from July 2024. Investors who bought $1,000 worth of ManpowerGroup’s shares 5 years ago would now be looking at an investment worth $597.45.
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