Shares of ManpowerGroup dropped 3.2% in premarket trading Tuesday, after the workforce services company reported third-quarter profit that beat expectations but revenue that came up short, as “strong” demand and a continued economic recovery was tempered by supply chain constraints and the continued impact of the COVID-19 pandemic. Net income jumped to $97.7 million, or $1.77 a share, from $10.3 million, or 18 cents a share, in the year-ago period. Excluding nonrecurring items, earnings per share came to $1.93, above the FactSet consensus of $1.91. Revenue grew 12.1% to $5.14 billion, but was below the FactSet consensus of $5.30 billion. Cost of services increased 11.1% to $4.29 billion, as gross margin improved to 16.6% from 15.8%. The company said expects fourth-quarter EPS of between $1.99 and $2.07, which surrounds the FactSet consensus of $2.04. “Global demand remained strong as our clients continue to look for skilled talent in a tight labor market and leverage our capabilities and workforce solutions expertise that help them achieve their desired business outcomes,” said Chief Executive Jonas Prising. The stock has rallied 25.5% year to date through Monday, while the S&P 500 has gained 19.5%.
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