Adecco SA Secures Mixed Ratings from Analysts Amid Earnings Update

Adecco SA (OTCMKTS:AHEXY) has received a consensus rating of “Hold” from the eight brokerage firms currently covering the company, according to Marketbeat Ratings. This rating reflects a mix of opinions, with one analyst recommending a sell, four recommending a hold, two suggesting a buy, and one issuing a strong buy recommendation.

Several research firms have recently provided updates on their assessments of Adecco. On September 11, 2023, Jefferies Financial Group upgraded Adecco from a “moderate sell” to a “hold” rating. In contrast, Zacks Research downgraded the stock from a “hold” to a “strong sell” on October 21, 2023. Meanwhile, Sanford C. Bernstein upgraded Adecco from a “hold” rating to an “outperform” rating on September 22, 2023.

In a notable shift, BNP Paribas downgraded Adecco from a “strong buy” to a “hold” rating on December 5, 2023. The same day, BNP Paribas Exane adjusted its rating from “outperform” to “neutral.”

Recent Earnings Performance

Adecco announced its earnings results on November 6, 2023, reporting earnings per share (EPS) of $0.39 for the quarter, which exceeded the consensus estimate of $0.35 by $0.04. The company generated revenue of $6.63 billion during the quarter, slightly below the expected $6.68 billion. Adecco’s return on equity stood at 10.98%, while the net margin was recorded at 1.22%. Analysts predict that Adecco will post earnings of $1.32 per share for the current fiscal year.

Company Overview

Adecco Group AG, alongside its subsidiaries, provides a range of human resource services across various regions including Europe, North America, Asia Pacific, South America, and North Africa. The company’s offerings include flexible placement, permanent placement, outsourcing, training, upskilling and reskilling, career transition, consulting, and digital staffing solutions. Adecco operates under several brand names, including Adecco, Akkodis, General Assembly, Badenoch + Clark, and Modis.

Investors and analysts will be monitoring Adecco’s stock performance closely in the coming months, particularly in light of the mixed ratings and recent earnings report. As the company navigates the evolving landscape of the business services industry, understanding these ratings will be crucial for stakeholders.