By October 29, 2021
Shares in Adecco Group soared after the company announced its third-quarter earnings and revenue growth, surpassing consensus estimates. As of 0951 GMT, shares were up 13% at CHF39.00.
The Swiss staffing group witnessed a remarkable 9% increase in adjusted earnings before interest, taxes, and amortization (EBITA), reaching 235 million euros ($248.4 million). This result exceeded the company-compiled consensus estimates of EUR197 million. Moreover, Adecco Group’s operating profit for the quarter stood at EUR184 million, up from the previous year’s figure of EUR163 million.
In terms of revenue, the company recorded EUR5.96 billion, showing a solid organic growth rate of 3%. This performance slightly surpassed consensus estimates of a 2% growth. UBS analysts highlighted that Adecco Group exhibited less slowdown compared to its peers, according to a research note.
Impressively, the company has achieved organic revenue growth above consensus for the third consecutive quarter. Looking ahead, Jefferies analysts Kean Marden and Allen Wells suggest that if this trend continues, Adecco Group could achieve organic revenue growth of 1% in the final quarter, once again surpassing consensus estimates.
Regarding expectations for the fourth quarter, the company anticipates that the gross margin, as well as selling, general, and administrative expenses, will remain around third-quarter levels.
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