Welcome!

PHP Authors: Liz McMillan, Carmen Gonzalez, Hovhannes Avoyan, Lori MacVittie, Trevor Parsons

News Feed Item

The Zacks Analyst Blog Highlights:ManpowerGroup, Kelly Services, Robert Half International, Washington Federal and Sterling Financial

CHICAGO, Nov. 2, 2012 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include ManpowerGroup (NYSE:MAN), Kelly Services Inc. (Nasdaq:KELYA), Robert Half International Inc. (NYSE:RHI), Washington Federal Inc. (Nasdaq:WAFD) and Sterling Financial Corporation (Nasdaq:STSA).

(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513

Here are highlights from Thursday's Analyst Blog:

Earnings Scorecard: Manpower

ManpowerGroup (NYSE:MAN), the global leader in the employment services industry, posted third-quarter 2012 results on October 19, 2012. Here we will discuss the company's scorecard, based on the recent earnings announcement, subsequent estimate revisions by analysts as well as the Zacks Rank and long-term recommendation for the stock.

Last Quarter Synopsis

ManpowerGroup delivered better-than-expected third-quarter 2012 results on the back of increased gross margin and effective cost management. The quarterly earnings of 79 cents a share surpassed the Zacks Consensus Estimate of 68 cents.

However, earnings per share dropped 18.6% year-over-year as the current sluggish macroeconomic environment resulted in soft demand for recruitment services, particularly in Europe, and weighed upon its results. Strong dollar also acted as a deterrent.

Milwaukee, Wisconsin based Manpower's total revenue waned 10.5% to $5,172.3 million but came ahead of the Zacks Consensus Estimate of $5,106 million.

The company now expects fourth quarter earnings between 72 cents and 80 cents a share, reflecting an estimated year-over-year decline of 26.5% to 18.4%, respectively. Management now projects total revenue for the quarter to decline between 5% and 7% in the U.S. dollars, or in the band of 3% to 5% in constant currency from the prior-year quarter.

(Read our full coverage on this earnings report: Manpower Beats, Profit Dips)

Agreement of Estimate Revisions

The agreement of estimate revisions indicates that the analysts were not unidirectional, following Manpower's third-quarter 2012 results.

In the last 30 days, 7 out of 13 analysts covering the stock raised their estimates, whereas 2 analysts lowered the same for the fourth quarter of 2012. For the first quarter of 2013, 4 analysts trimmed their estimates, whereas 2 analysts made upward revisions.      

For fiscal 2012, 11 analysts revised their estimates upward, and only 1 analyst lowered the same in the last 30 days. For fiscal 2013, 6 analysts increased their estimates and 5 analysts made downward revisions.

What Drives Estimate Revision

Manpower's better-than-expected top and bottom line performances instilled confidence among the analysts who went on to revise their estimates upwards. Further bolstering their bullish attitude was that the quarterly earnings per share, which also came ahead of management's previous provided guidance range of 64 cents to 72 cents per share.

Moreover, the analysts' sentiments were uplifted, as the company is now contemplating on exiting lower margin business and venturing into high margin business. The company is also focusing on controlling its expenses. On the other hand, the ManpowerGroup Solutions business sustained its growth momentum. The demand for the countercyclical outplacement services is also portraying signs of steadiness, which rose 18% during the quarter.

Despite these, some analysts remain bearish on the stock and lowered their estimates on account of an 18.6% earnings per share decline in the third quarter and a dismal fourth quarter outlook. Moreover, analysts remained on the back foot as the rate of decline in total revenue accelerated sequentially. After falling 8.1% year over year in the second quarter of 2012, total revenue dropped 10.5% during the third quarter. In constant currency too, the rate of decline increased to 3.8% in the quarter under review from 0.8% in the previous quarter.

However to be noted, that the rate of decline in the top line projected by management for the fourth quarter, decelerated from the third quarter, thereby giving analysts an opportunity to raise their estimates.

Magnitude of Estimate Revisions

The magnitude of estimate revisions by the analysts is clearly reflected through changes in the Zacks Consensus Estimates.      

The Zacks Consensus Estimate for the fourth quarter of 2012 has moved up by 6 cents to 77 cents a share in the last 30 days. The Zacks Consensus Estimate for the first quarter of 2013 dropped by 3 cents to 41 cents a share.

For fiscal 2012, the Zacks Consensus Estimate jumped 14 cents to $2.81 in the last 30 days. Over the same time frame, the Zacks Consensus Estimate for fiscal 2013 slid by a penny to $2.92.

Closing Comment

Manpower's comprehensive range of services makes the company a true global staffing firm. The company's brand value and strong global network provides it with a competitive advantage and reinforces its dominant position in the market. However, what compels us to have a cautious view on the stock is the company's dwindling top and bottom line performances as well as soft projections of the same for the fourth quarter.

Currently, we maintain our "Neutral" recommendation on the stock. Moreover, Manpower, which competes with Kelly Services Inc. (Nasdaq:KELYA) and Robert Half International Inc. (NYSE:RHI), holds a Zacks #3 Rank that translates into a short-term "Hold" rating.

Wash Federal Acquires South Valley

Recently, Washington Federal Inc. (Nasdaq:WAFD) announced the completion of the acquisition of Oregon-based South Valley Bancorp Inc. Per the deal, with the amalgamation of both the parent companies, South Valley's wholly-owned subsidiary – South Valley Bank & Trust – will also merge with Washington Federal's wholly-owned subsidiary – Washington Federal.

Washington Federal further stated that the combined company will have 190 offices in 8 western states. Furthermore, the combined company will have access to a bigger branch network, higher liquidity and increased lending capacity, which will propel its profitability going forward.

The acquisition will add roughly $514 million loans and $743 million deposits to Washington Federal's financials. It will also strengthen the company's foothold in southern and central Oregon, which in turn will drive its banking and commercial real estate businesses.

Washington Federal has always been inclined towards mergers and acquisitions due to its capital strength. In 2011, the company acquired Albuquerque, New Mexico-based Charter Bank and Phoenix, Arizona-based failed Western National Bank.

In 2010, Washington Federal acquired all of the deposits of Horizon Bank of Bellingham, Washington. Also, the company acquired First Mutual Bancshares Inc. and First Federal Banc of the Southwest Inc. in 2008 and 2007, respectively.

These mergers and acquisitions have helped Washington Federal increase its assets, workforce and branch network, which in turn has strengthened its market share substantially. We expect the company to maintain this growth strategy.

Currently, Washington Federal retains a Zacks #3 Rank, which translates into a short-term Hold rating. Among its peers, Sterling Financial Corporation (Nasdaq:STSA) also retains a Zacks #3 Rank.

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leon Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Follow us on Twitter: http://twitter.com/zacksresearch

Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

[email protected]

http://www.zacks.com

 

SOURCE Zacks Investment Research, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
What sort of WebRTC based applications can we expect to see over the next year and beyond? One way to predict development trends is to see what sorts of applications startups are building. In his session at @ThingsExpo, Arin Sime, founder of WebRTC.ventures, will discuss the current and likely future trends in WebRTC application development based on real requests for custom applications from real customers, as well as other public sources of information,
SYS-CON Events announced today that Infranics will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Since 2000, Infranics has developed SysMaster Suite, which is required for the stable and efficient management of ICT infrastructure. The ICT management solution developed and provided by Infranics continues to add intelligence to the ICT infrastructure through the IMC (Infra Management Cycle) based on mathemat...
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 20th Cloud Expo, which will take place on June 6-8, 2017 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 add...
SYS-CON Events announced today that Cloudistics, an on-premises cloud computing company, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Cloudistics delivers a complete public cloud experience with composable on-premises infrastructures to medium and large enterprises. Its software-defined technology natively converges network, storage, compute, virtualization, and management into a ...
Now that the world has connected “things,” we need to build these devices as truly intelligent in order to create instantaneous and precise results. This means you have to do as much of the processing at the point of entry as you can: at the edge. The killer use cases for IoT are becoming manifest through AI engines on edge devices. An autonomous car has this dual edge/cloud analytics model, producing precise, real-time results. In his session at @ThingsExpo, John Crupi, Vice President and Eng...
In the enterprise today, connected IoT devices are everywhere – both inside and outside corporate environments. The need to identify, manage, control and secure a quickly growing web of connections and outside devices is making the already challenging task of security even more important, and onerous. In his session at @ThingsExpo, Rich Boyer, CISO and Chief Architect for Security at NTT i3, will discuss new ways of thinking and the approaches needed to address the emerging challenges of securit...
The taxi industry never saw Uber coming. Startups are a threat to incumbents like never before, and a major enabler for startups is that they are instantly “cloud ready.” If innovation moves at the pace of IT, then your company is in trouble. Why? Because your data center will not keep up with frenetic pace AWS, Microsoft and Google are rolling out new capabilities In his session at 20th Cloud Expo, Don Browning, VP of Cloud Architecture at Turner, will posit that disruption is inevitable for c...
There are 66 million network cameras capturing terabytes of data. How did factories in Japan improve physical security at the facilities and improve employee productivity? Edge Computing reduces possible kilobytes of data collected per second to only a few kilobytes of data transmitted to the public cloud every day. Data is aggregated and analyzed close to sensors so only intelligent results need to be transmitted to the cloud. Non-essential data is recycled to optimize storage.
SYS-CON Events announced today that Loom Systems will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Founded in 2015, Loom Systems delivers an advanced AI solution to predict and prevent problems in the digital business. Loom stands alone in the industry as an AI analysis platform requiring no prior math knowledge from operators, leveraging the existing staff to succeed in the digital era. With offices in S...
As businesses adopt functionalities in cloud computing, it’s imperative that IT operations consistently ensure cloud systems work correctly – all of the time, and to their best capabilities. In his session at @BigDataExpo, Bernd Harzog, CEO and founder of OpsDataStore, will present an industry answer to the common question, “Are you running IT operations as efficiently and as cost effectively as you need to?” He will expound on the industry issues he frequently came up against as an analyst, and...
In his General Session at 16th Cloud Expo, David Shacochis, host of The Hybrid IT Files podcast and Vice President at CenturyLink, investigated three key trends of the “gigabit economy" though the story of a Fortune 500 communications company in transformation. Narrating how multi-modal hybrid IT, service automation, and agile delivery all intersect, he will cover the role of storytelling and empathy in achieving strategic alignment between the enterprise and its information technology.
"I think that everyone recognizes that for IoT to really realize its full potential and value that it is about creating ecosystems and marketplaces and that no single vendor is able to support what is required," explained Esmeralda Swartz, VP, Marketing Enterprise and Cloud at Ericsson, in this SYS-CON.tv interview at @ThingsExpo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Microservices are a very exciting architectural approach that many organizations are looking to as a way to accelerate innovation. Microservices promise to allow teams to move away from monolithic "ball of mud" systems, but the reality is that, in the vast majority of organizations, different projects and technologies will continue to be developed at different speeds. How to handle the dependencies between these disparate systems with different iteration cycles? Consider the "canoncial problem" ...
SYS-CON Events announced today that HTBase will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. HTBase (Gartner 2016 Cool Vendor) delivers a Composable IT infrastructure solution architected for agility and increased efficiency. It turns compute, storage, and fabric into fluid pools of resources that are easily composed and re-composed to meet each application’s needs. With HTBase, companies can quickly prov...
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor - all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
China Unicom exhibit at the 19th International Cloud Expo, which took place at the Santa Clara Convention Center in Santa Clara, CA, in November 2016. China United Network Communications Group Co. Ltd ("China Unicom") was officially established in 2009 on the basis of the merger of former China Netcom and former China Unicom. China Unicom mainly operates a full range of telecommunications services including mobile broadband (GSM, WCDMA, LTE FDD, TD-LTE), fixed-line broadband, ICT, data communica...
SYS-CON Events announced today that MobiDev, a client-oriented software development company, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software company that develops and delivers turn-key mobile apps, websites, web services, and complex softw...
SYS-CON Events announced today that Cloud Academy will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Cloud Academy is the industry’s most innovative, vendor-neutral cloud technology training platform. Cloud Academy provides continuous learning solutions for individuals and enterprise teams for Amazon Web Services, Microsoft Azure, Google Cloud Platform, and the most popular cloud computing technologies. Ge...