Monster Worldwide Earnings: Reversing to a Loss Following Two Consecutive Quarters of Profit

S&P 500 (NYSE:SPY) component Monster Worldwide Inc. (NYSE:MWW) swung to a loss in the third quarter, missing analysts’ forecast. Monster Worldwide provides global online employment solutions and services in at least 50 countries around the world.

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Monster Worldwide Inc. Earnings Cheat Sheet

Results: Reported a loss of $1.9 million ($1.75 per diluted share) in the quarter. Monster Worldwide Inc. had a net income of $31.8 million or 26 cents per share in the year-earlier quarter.

Revenue: Fell 10.8% to $22.2 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Monster Worldwide Inc. fell short of the mean analyst estimate of 5 cents per share. It fell short of the average revenue estimate of $240.5 million.

Quoting Management: Sal Iannuzzi, chairman, president and chief executive officer of Monster Worldwide, said, “During the third quarter, our bookings in North America, excluding the Government vertical, were up slightly, while bookings in Europe and Asia were negatively impacted by the challenging economic environment. We are implementing a plan to concentrate our resources on our largest markets where we generate the lion’s share of our revenue and profit and where we are experiencing increased customer traction with our advanced technologies. We believe this plan provides Monster the resources to grow our leading businesses in North America and Europe.””While our strategic alternatives review is ongoing and we remain committed to maximizing value for shareholders, today we are announcing a series of actions designed to increase the Company’s profitability and strengthen its core profitable markets,” Iannuzzi concluded.

Key Stats:

The company’s loss in the latest quarter follows profits in the previous three quarters. The company reported a profit of $4.8 million in the second quarter, a profit of $3.7 million in the first quarter and $10.9 million in the fourth of the last fiscal year.

The company fell short of estimates last quarter after being in line with expectations the quarter before with net income of 6 cents.

Looking Forward: Over the past ninety days, the average estimate for the fourth quarter has fallen from 6 cents per share to 5 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. For the fiscal year, the average estimate has moved down from 20 cents a share to 19 cents over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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