ManpowerGroup (NYSE:MAN) certainly had a mixed quarter but the news is more bullish than not. While the revenue and earnings both fell short of the Marketbeat.com consensus estimates margins widened, cash flow was strong, shares were repurchased, and the dividend was paid. The dividend, notably, is yielding more than 3.3% with shares trading at their current levels and it is a safe payout. The company is distributing only 32% of its earnings while growing earnings and guiding the market higher. Based on our take on the labor market the company's business is stable if not strong so we are expecting to see the guidance raised again later in the year, and for the dividend to be increased a 13th consecutive year.
"As we start the third quarter, labor markets remain very solid and demand for talent is strong," said CEO Jonas Prising. "We continue to monitor those sectors in Europe where present-day supply-chain disruptions are impacting our business, particularly in the automotive industry. At the same time, we also believe the persistent level of talent shortage represents a significant opportunity for our business. We see this evidenced by the strong ongoing demand in our permanent recruitment services, in our RPO and MSP Talent Solution offerings, in our Experis IT resourcing and solutions, and across our Manpower Specializations.
