Adecco (OTCMKTS:AHEXY) Shares Down 8.9% - What's Next?

Key Points

• Adecco shares fell 8.9% to $13.07 on Tuesday, although trading volume was exceptionally light at roughly 410 shares—98% below the average daily volume.
• Analyst sentiment is mixed: recent upgrades came from BNP Paribas Exane and Zacks Research, while Morgan Stanley maintained an underweight view. Overall, Adecco carries a consensus “Hold” rating.
• The company exceeded quarterly expectations, reporting $0.35 in earnings per share versus a $0.30 estimate and $6.93 billion in revenue versus $6.83 billion expected. Analysts forecast full-year EPS of approximately $1.45.

Adecco SA (OTCMKTS:AHEXY - Get Free Report) dropped 8.9% during trading on Tuesday. The company traded as low as $13.07 and last traded at $13.07. Approximately 410 shares traded hands during trading, a decline of 98% from the average daily volume of 19,735 shares. The stock had previously closed at $14.3450.

Analyst Ratings Changes

Several equities research analysts have recently weighed in on the stock. BNP Paribas Exane raised shares of Adecco from a "hold" rating to a "strong-buy" rating in a research report on Friday, July 17th. Zacks Research raised shares of Adecco from a "strong sell" rating to a "hold" rating in a report on Monday, July 13th. Deutsche Bank Aktiengesellschaft reissued a "buy" rating on shares of Adecco in a research note on Wednesday, September 9th. Jefferies Financial Group raised Adecco from a "moderate sell" rating to a "hold" rating in a research report on Thursday, September 10th. Finally, Morgan Stanley reiterated an "underweight" rating on shares of Adecco in a report on Tuesday, September 8th. One investment analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating, three have assigned a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, Adecco presently has an average rating of "Hold".

Adecco Price Performance

The firm has a market capitalization of $4.54 billion, a P/E ratio of 12.95, a P/E/G ratio of 1.37 and a beta of 0.94. The stock's fifty day simple moving average is $14.55 and its 200 day simple moving average is $12.30. The company has a debt-to-equity ratio of 0.86, a current ratio of 1.15 and a quick ratio of 1.15.

Adecco (OTCMKTS:AHEXY - Get Free Report) last released its quarterly earnings results on Thursday, August 6th. The business services provider reported $0.35 earnings per share for the quarter, beating analysts' consensus estimates of $0.30 by $0.05. Adecco had a net margin of 1.25% and a return on equity of 12.67%. The business had revenue of $6.93 billion for the quarter, compared to analysts' expectations of $6.83 billion. On average, equities research analysts predict that Adecco SA will post 1.45 EPS for the current year.

Adecco Company Profile

Adecco is a global workforce solutions and talent advisory company headquartered in Zurich, Switzerland. It helps organizations recruit, place and manage employees across a range of industries, while also supporting job seekers with career opportunities, skills development and workforce guidance.

The company's services include temporary and permanent staffing, recruitment, career transition and outplacement, talent development, outsourcing and workforce consulting. Adecco operates through brands and business lines that include Adecco for staffing and recruitment, Akkodis for technology and engineering consulting, and LHH for professional recruitment, leadership development and career transition services.

Adecco traces its history to the 1996 merger of the Swiss staffing company Adia and France's Ecco.

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