ManpowerGroup, a leading global workforce solutions company, has reported its financial results for the third quarter of 2024. The company's revenues for the quarter were $4.5 billion, representing a 3% decrease from the prior year period. However, on a constant currency basis, the revenue decrease was 2%.
The company also reported a gross profit margin of 17.3%, with staffing margins remaining solid and permanent recruitment levels stable. Additionally, the selling, general, and administrative (SG&A) expenses were reduced by 5% both as reported and on a constant currency basis as adjusted.
ManpowerGroup's net earnings for the three months ended September 30, 2024, were $22.8 million, resulting in diluted earnings per share of $0.47. This is a decrease from the net earnings of $30.3 million and diluted earnings per share of $0.60 in the prior year period.
The company's financial performance in the quarter was impacted by the U.S. dollar relative to foreign currencies, which resulted in a negative 8 cents foreign currency impact on earnings per share. Excluding this impact, earnings per share decreased by 8% in constant currency.
Moreover, the nine-month net earnings for 2024 were $122.6 million, or $2.53 per diluted share, compared to $173.3 million, or $3.42 per diluted share in the prior year. Excluding certain charges, earnings per share for the nine-month period decreased by 20% in constant currency. The revenues for the nine-month period were $13.5 billion, representing a decrease of 6% compared to the prior year or a decrease of 4% in constant currency.
In terms of future outlook, ManpowerGroup anticipates diluted earnings per share in the fourth quarter to be between $0.98 and $1.08, which includes an estimated unfavorable currency impact of 1 cent.
Despite the challenging environment in North America and Europe, the company's U.S. business launched innovative Manpower branch offices inside select Walmart locations during the quarter. Additionally, the company reached an agreement to sell its South Korea business, which will operate as a Manpower franchise in the future.
The market has reacted to these announcements by moving the company's shares -9.9% to a price of $66.91. For the full picture, make sure to review Manpower's 8-K report.