ManpowerGroup stock set to fall after profit misses, amid a challenging recruiting environment

Shares of ManpowerGroup
MAN,
-7.32%
were indicated down about 1% in premarket trading Thursday, after the staffing and headhunter services company reported second-quarter profit that missed expectations, amid a challenging environment for recruitment and resourcing in the U.S. and Europe. Net income fell to $65.2 million, or $1.29 a share, from $122.2 million, or $2.29 a share, in the year-ago period. Excluding restructuring costs and Argentina-related currency losses, adjusted earnings per share of $1.58 came in below the FactSet consensus of $1.62. Revenue declined 4.3% to $4.856 billion, just above the FactSet consensus of $4.847 billion. The company said it decided to wind down its Proservia managed services business in Germany, as the outsourcing business was “not part of our go-forward strategy and will improve the profitability of our Northern Europe business going forward.” The stock has run up 20.4% over the past three months through Wednesday, while the S&P 500
SPX,
-0.68%
has advanced 10.6%.