Manpower Hikes Dividend - Analyst Blog

By Zacks | May 03, 2012 AAA

After posting better-than-expected first-quarter 2012 results, ManpowerGroup (MAN), the global leader in the employment services industry, has announced a hike in dividend. Milwaukee, Wisconsin based Manpowerraised its semi-annual dividend to 43 cents a share, up from 40 cents. The increased dividend is payable on June 15, 2012, to shareholders of record as of June 1, 2012. 

A hike in dividend appears to be one of the best tools to win the hearts of the investors, who now prefer to move to a safe heaven, in an economy that is still struggling to recover. Investors, in order to shield themselves from the upheavals that the financial world is susceptible to, are now diligently choosing their portfolio of stocks that can give them the best returns. On that note, we believe underlining dividend growth potentiality plays a vital role in building the portfolio.

Manpower now expects second-quarter 2012 earnings in the range of 68 cents to 76 cents a share, including an unfavorable impact of foreign currency translation of 4 cents.

Management now projects second quarter total revenues to be flat or down 2% in constant currency, when compared with the prior-year quarter. On a segment basis, management forecasts low-to-mid single digit growth in constant currency for the Americas, Asia Pacific and Right Managemen unit. Revenues for Southern Europeand Northern Europeare expected to fall in the low to mid-single digits in constant currency.

Management projects sequential improvement in gross profit margin, which is expected to be somewhat in line with the prior year. Operating profit margin is projected to be in the range of 2.3% to 2.5%.

With a well-established network of nearly 3,800 offices in approximately 80 countries, Manpower currently offers its services to about 400,000 clients. We believe that Manpower's brand value, comprehensive range of services and a strong global network provide a competitive advantage and reinforce its dominant position in the market.

Currently, we have a long-term 'Outperform' recommendation on ManpowerGroup. Moreover, the company, which competes with Kelly Services Inc. (KELYA) and Robert Half International Inc. (RHI), has a Zacks #2 Rank that translates into a short-term "Buy" rating.

 
KELLY SVCS A (KELYA): Free Stock Analysis Report
 
MANPOWER INC WI (MAN): Free Stock Analysis Report
 
ROBT HALF INTL (RHI): Free Stock Analysis Report
 
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