UPDATE 3-Manpower beats estimates; industry trends strong

* Q3 shr 62 cents vs. 47 cents expected

* Q3 rev rises 19 pct to $4.97 billion

* Sees Q4 shr 54 cents to 62 cents (Adds CEO and analyst comment, byline, updates share activity)

NEW YORK, Oct 20 (Reuters) - Manpower Inc's MAN.N quarterly profit beat Wall Street estimates by a wide margin as an uncertain global economy increased demand for temporary workers in the United States, Germany, Britain and other major markets.

Employers, reluctant to commit to full-time hiring before seeing concrete signs that a recovery has taken root, are relying more on contingent labor, flexibly employing people as needed, often for short contracts.

The results boosted shares of the global employment services company by 4.4 percent to their best level since May and helped stocks of other staffing companies.

“We’ve never had a spot like this as an industry, or when we do it’s short-lived, three to five months, and then you’re into a full-on recovery,” Chief Executive Jeff Joerres said, adding that the company was able to quickly meet demand because it did not aggressively close offices during the recession.

Manpower reported a profit of $51.3 million, or 62 cents per share, compared with a year-earlier loss of $52.8 million, or 67 cents per share, that included large charges.

Analysts on average expected a profit of 47 cents per share, according to Thomson Reuters I/B/E/S.

Revenue rose 19 percent to $4.97 billion, compared with Wall Street forecasts of $4.8 billion.


The beat versus expectations was broad, including in the United States as well as in France, which is Manpower’s biggest market, said T.C. Robillard, Senior Industry Analyst at Signal Hill Capital LLC.

“The only bad scenario for them is if we double-dipped,” he said, noting that Manpower is broadly diversified, providing both lower-end manufacturing workers and professional staff in areas like technology and finance.

“If we’re in this prolonged, subdued growth, it really is a sweet spot for temp,” Robillard said. “Any company that’s not confident enough to hire permanently is going to continue to leverage the temporary labor force. If growth kicks in, they’re going to participate in that.”

Robillard, who sees Manpower shares reaching $78 within a year, said Manpower's results bode well for earnings at Kelly Services KELYA.O, as well as European rivals like Adecco ADEN.VX and Randstad RAND.AS. Shares of those companies were higher on Wednesday.

Manpower, which generates most of its sales and profits outside the United States but is considered to be a bellwether for the U.S. staffing sector, said it expected fourth-quarter earnings between 54 cents and 62 cents a share, before restructuring charges of up to 20 cents.

Analysts were expecting a fourth-quarter profit of 52 cents a share. (Reporting by Nick Zieminski; Editing by Lisa Von Ahn, Maureen Bavdek and Gunna Dickson)