Overview

• Global workforce solutions provider's Q1 revenue grew 10% yr/yr, beating analyst expectations

• Adjusted EPS for Q1 beat analyst expectations, aided by cost management and transformation charges

• Company launched expanded global transformation program targeting $200 mln in permanent cost savings by 2028

Outlook

• ManpowerGroup expects Q2 diluted EPS between $0.91 and $1.01, including $0.05 currency benefit

• ManpowerGroup expects $200 mln in permanent cost savings from transformation program in 2028

Result Drivers

• REGIONAL DEMAND VARIATION - Strong demand in Asia Pacific, Latin America, and select European countries, with France stabilizing to flat revenue yr/yr

• BRAND PERFORMANCE MIX - Manpower brand saw strong growth; Experis affected by soft professional demand; Talent Solutions faced ongoing headwinds from tempered permanent hiring, though rate of decline narrowed

• COST MANAGEMENT - SG&A expenses declined yr/yr in constant currency due to cost management efforts

Company press release: ID:nPn4s40Kxa

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Beat	$4.51 bln	$4.41 bln (8 Analysts)
Q1 Adjusted EPS	Beat	$0.51	$0.49 (10 Analysts)
Q1 EPS		$0.05
Q1 Net Income		$2.5 mln

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the employment services peer group is "buy"

• Wall Street's median 12-month price target for ManpowerGroup Inc is $37.00, about 20.4% above its April 15 closing price of $30.73

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago

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