Tuesday, April 27, 2010
Revenue was also light of estimates. Q1 2010 revenue $737.2M vs. analyst consensus of $750.76M. Robert Half International although it sustained through the down draft of the financial crisis continues to face slack demand in all components of the company.
When valuations have risen as fast as they have, and demand has been lukewarm from the cyclical bottom, these temporary, and staffing firms continue to produce fairly weak margins.
I continue to see this sector as overvalued relative to the S&P's earnings.
Thursday, April 22, 2010
Manpower beat the estimates as an analyst from S&P raised their estimates. While Manpower lowered their estimates for the next quarter to set the bar lower ahead of it's acquisition of COMSYS.
The problem with the the increase is primarily the continued weak profitability in Manpower's numbers.
Operating margins in all regions experienced flat to slightly negative operating margins.
With the increase in revenue growth all MAN managed was sub two million in profits. If there is any downturn, and a majority of the analysts have not priced in what a Greece, and PIIGS default would cause to Manpower's underlying business with a bulk of their revenue coming from the European nations. Out of all the majorly traded staffing firms on the NYSE, MAN has the most underlying risk with such a sizable stake of it's business from Europe.
France has a large stake of its bonds in Greece, with over 700+ billion. If Greece were to continue to find itself in limbo, France may find it's own economic growth in jeopardy.
Tuesday, April 13, 2010
"According to the NFIB's latest survey, most owners think business conditions will not improve in the next six months, few are hiring, and fewer than usual are investing in their business. "
Thursday, April 8, 2010
Innovative small technology and service companies slowed hiring against
broader U.S. averages during March, and while layoffs rose slightly, they
remained well below last year´s highs. Net employment growth appeared flat in
March, which may indicate that companies are waiting for signals about the
broader business climate.
Friday, April 2, 2010
Although, employment has slightly ticked up, the US continues to experience a structural change in employment. These structural changes take years to right its ship.
An environment of higher dollar, increased regulation, and health care costs, and taxes usually do not fuel a booming economy. Time will tell if the economy can continue to make gains.