Why Are Manpower's Stocks Plunging On Thursday?

ManpowerGroup Inc. (NYSE:MAN) shares were trading lower in premarket at last check on Thursday after the first-quarter FY25 earnings.

The company reported first-quarter FY25 sales decline of 7.1% year-on-year to $4.09 billion, beating the analyst consensus estimate of $3.96 billion.

Revenue from services: Americas $1.05 billion (+2% Y/Y), Southern Europe $1.83 billion (-7.4% Y/Y), Northern Europe $730.8 million (-16% Y/Y) and APME $476.4 million (-11% Y/Y).

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Fourth-quarter adjusted EPS was $0.44, missing the consensus of $0.50.

Gross margin contracted by 20 bps to 17.1%. The operating income plunged by 57.2% Y/Y to $28.2 million, and the margin compressed by 80 bps to 0.7%.

ManpowerGroup used $153.2 million in cash in operating activities in the first-quarter. The company held cash and equivalents of $395 million as of March 31, 2025.

“During the quarter, we saw good growth in Latin America and Asia Pacific while operating conditions remained challenging in Europe and North America.  More recently, the demand outlook is less clear based on increased caution following trade policy developments,” said chair and CEO Jonas Prising.

Outlook: ManpowerGroup expects second-quarter EPS of $0.65 – $0.75, versus an estimate of $0.95.

Price Action: MAN shares are trading lower by 9.11% at $45.00 in premarket at last check Thursday.

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