UPDATE 3-Manpower beats estimates; industry trends strong

* Q3 shr 62 cents vs. 47 cents expected

* Q3 rev rises 19 pct to $4.97 billion

* Sees Q4 shr 54 cents to 62 cents
(Adds CEO and analyst comment, byline, updates share

By Nick Zieminski

NEW YORK, Oct 20 (BestGrowthStock) – Manpower Inc’s (MAN.N: )
quarterly profit beat Wall Street estimates by a wide margin as
an uncertain global economy increased demand for temporary
workers in the United States, Germany, Britain and other major

Employers, reluctant to commit to full-time hiring before
seeing concrete signs that a recovery has taken root, are
relying more on contingent labor, flexibly employing people as
needed, often for short contracts.

The results boosted shares of the global employment
services company by 4.4 percent to their best level since May
and helped stocks of other staffing companies.

“We’ve never had a spot like this as an industry, or when
we do it’s short-lived, three to five months, and then you’re
into a full-on recovery,” Chief Executive Jeff Joerres said,
adding that the company was able to quickly meet demand because
it did not aggressively close offices during the recession.

Manpower reported a profit of $51.3 million, or 62 cents
per share, compared with a year-earlier loss of $52.8 million,
or 67 cents per share, that included large charges.

Analysts on average expected a profit of 47 cents per
share, according to Thomson Reuters I/B/E/S.

Revenue rose 19 percent to $4.97 billion, compared with
Wall Street forecasts of $4.8 billion.


The beat versus expectations was broad, including in the
United States as well as in France, which is Manpower’s biggest
market, said T.C. Robillard, Senior Industry Analyst at Signal
Hill Capital LLC.

“The only bad scenario for them is if we double-dipped,” he
said, noting that Manpower is broadly diversified, providing
both lower-end manufacturing workers and professional staff in
areas like technology and finance.

“If we’re in this prolonged, subdued growth, it really is a
sweet spot for temp,” Robillard said. “Any company that’s not
confident enough to hire permanently is going to continue to
leverage the temporary labor force. If growth kicks in, they’re
going to participate in that.”

Robillard, who sees Manpower shares reaching $78 within a
year, said Manpower’s results bode well for earnings at Kelly
Services (KELYA.O: ), as well as European rivals like Adecco
(ADEN.VX: ) and Randstad (RAND.AS: ). Shares of those companies
were higher on Wednesday.

Manpower, which generates most of its sales and profits
outside the United States but is considered to be a bellwether
for the U.S. staffing sector, said it expected fourth-quarter
earnings between 54 cents and 62 cents a share, before
restructuring charges of up to 20 cents.

Analysts were expecting a fourth-quarter profit (Read more your timing to make a profit.) of 52 cents
a share.
(Reporting by Nick Zieminski; Editing by Lisa Von Ahn, Maureen
Bavdek and Gunna Dickson)

UPDATE 3-Manpower beats estimates; industry trends strong