Shares of ManpowerGroup (MAN) were indicated down about 1% in premarket trading Thursday, following the company’s report of second-quarter profit that missed expectations. The challenging recruitment and resourcing environment in the U.S. and Europe impacted their financial performance.
Lower Net Income and Adjusted Earnings per Share
ManpowerGroup’s net income fell to $65.2 million, or $1.29 a share, from $122.2 million, or $2.29 a share, in the year-ago period. Excluding restructuring costs and Argentina-related currency losses, adjusted earnings per share of $1.58 were reported, which fell below the FactSet consensus of $1.62.
Decline in Revenue
The company also witnessed a decline in revenue, which decreased by 4.3% to $4.856 billion. However, this figure was slightly above the FactSet consensus of $4.847 billion.
Strategic Move: Proservia Managed Services Business Winding Down
ManpowerGroup announced its decision to wind down its Proservia managed services business in Germany. They stated that this outsourcing business did not align with their go-forward strategy and that winding it down would improve the profitability of their Northern Europe business.
Recent Stock Performance
Over the past three months through Wednesday, ManpowerGroup’s stock has seen a significant increase of 20.4%. In comparison, the S&P 500 has advanced by 10.6%.