ManpowerGroup Inc. (NYSE:MAN) beat its own guidance as well as market estimates when it declared earnings for the third quarter.
The stock jumped 9.71% to close Friday at $79.99, on volume of 11.42 million shares compared to average volume of just 723.20K shares.
ManPower is a global provider of staffing services and workforce solutions.
ManpowerGroup Inc. (NYSE:MAN) shrugs off Brexit
The company said that its business was not significantly affected by the U.K.’s Brexit decision, though it had added some uncertainty to economic and employment growth prospects in the UK.
“We have not yet seen a significant impact on UK growth or client behaviour through the third quarter,” said Chairman and CEO Jonas Prising. UK is the largest market for the company in northern Europe.
“I’m encouraged to see a slightly better revenue performance than what we expected across a number of markets around the world,” he added, however. “We remain in a slow-growth environment, one in which we are very well-positioned to take advantage of the many opportunities our clients are presenting to us.”
The company said Q3 EPS was $1.87 (which beat market expectations by $0.16) and revenue came in at $5.09 billion (which beat market estimates by $100 million) and was up 2.4% year-on-year.
ManpowerGroup Inc. (NYSE:MAN) sees solid growth in the fourth quarter
The company expects fourth-quarter 2016 diluted net earnings per share at $1.65 to $1.73.
Prising said: “We executed well in the third quarter despite continued soft and uneven market conditions globally. This slow growth environment results in our services and solutions becoming increasingly more attractive to companies that need operational and strategic flexibility. We have seen this translate into continued strong growth in our permanent recruitment and market leading workforce solutions offerings. As we look to the fourth quarter we are well placed to seize further opportunities across all our brands.”
Technically, the Q3 numbers added as a catalyst in pushing the stock up and threw a confluence of the three moving averages, namely, the 20 day, 50 day and 200 day lines.
The stock also closed above its long-term trend line which has been sloping downwards since September 2015. These are all bullish factors.