ManpowerGroup Inc (NYSE:MAN) reported a second-quarter FY23 sales decline of 4% year-on-year to $4.856 billion, beating the analyst consensus of $4.85 billion.
The challenging operating environment in the U.S. and Europe contributed to revenue declines in Manpower, Experis and Talent Solutions.
Gross profit decreased 6.4% Y/Y to $862.3 million with a gross margin of 17.8%.
Selling and administrative expenses increased 1.9% for the quarter to $754.7 million.
The operating margin for the quarter compressed 140 basis points to 2.2%, with $107.6 million in operating income.
Adjusted EPS of $1.58 missed the analyst consensus of $1.62.
The company held cash and equivalents as of June 30, 2023, of $407.6 million. Cash used in operating activities for six months totaled $(31.2) million.
“Our second quarter results reflect a challenging operating environment for recruitment and resourcing in the U.S. and Europe,” said Chairman & CEO Jonas Prising.
Outlook: The company sees Q3 EPS of $1.32-$1.42 against the analyst consensus of $1.55.
Price Action: MAN shares are trading lower by 7.78% at $81.94 on the last check Thursday.
