ManpowerGroup ( NYSE: MAN ) fell in early trading on Tuesday after the company fell short of estimates with its Q2 earnings report.
Revenue fell 4% during the quarter to $5.1B, while operating profit was up 6.3% to $180.7M.
The company said the quarterly results were impacted by the stronger U.S. dollar relative to foreign currencies compared to the prior year period, resulting in a $0.25 negative impact to EPS. The F/X swing represented an additional $0.06 negative impact to EPS from foreign currency than anticipated in MAN's Q2 guidance
Looking ahead to Q3, MAN management execs noted that the labor markets remain very solid and demand for talent is strong. The company is monitoring sectors in Europe where present-day supply-chain disruptions are impacting the business, particularly in the automotive industry. The persistent level of talent shortage is seen representing a significant opportunity for the business as evidenced by the strong ongoing demand in permanent recruitment services, in the RPO and MSP Talent Solution offerings, in the Experis IT resourcing and solutions, and across Manpower Specializations. Manpowergroup ( MAN ) expects Q3 EPS of $2.19 to $2.27 vs. $2.24 consensus.
Shares of MAN fell 3.58% premarket on Tuesday to $76.70 following the earnings miss.
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ManpowerGroup falls after F/X swings contribute to earning miss