Monster Worldwide Inc. Earnings: Increase in Profit Year Over Year

Falling revenue did not prevent S&P 500 (NYSE:SPY) component Monster Worldwide Inc. (NYSE:MWW) from reporting a profit boost in the fourth quarter. Monster Worldwide provides global online employment solutions and services in at least 50 countries around the world.

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Monster Worldwide Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for Monster Worldwide Inc. rose to $10.9 million (9 cents per share) vs. $501,000 (0 cents per share) in the same quarter a year earlier. This marks a substantial increase from the year earlier quarter.

Revenue: Fell 2% to $250 million from the year earlier quarter.

Actual vs. Wall St. Expectations: MWW reported adjusted net income of 11 cents per share. By that measure, the company fell short of mean estimate of 12 cents per share. It fell short of the average revenue estimate of $258.9 million.

Quoting Management: Sal Iannuzzi, chairman, president and chief executive officer of Monster Worldwide, said, “In 2011, our Global Careers bookings increased 18% year over year despite a more challenging economic environment in the latter half. We also significantly improved profitability, with an operating margin of 7% in 2011 compared to approximately break-even in 2010, and had $250 million in cash and cash equivalents at year-end. Our focus in 2012 will be to further leverage our product leadership and global platform, and increase customer adoption.”

Key Stats:

A year-over-year revenue decrease last quarter snaps a streak of four consecutive quarters of revenue increases. The best quarter in that span was the second quarter, which saw revenue rise 25.5%.

The company fell short of forecasts after beating estimates in the previous two quarters. In the third quarter, it topped the mark by 2 cents, and in the second quarter, it was ahead by one cent.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the first quarter of the next fiscal year has moved down from 11 cents a share to 9 cents over the last ninety days. The average estimate for the fiscal year is 39 cents per share, down from 41 cents ninety days ago.

Competitors to Watch: DICE HOLDINGS, INC. (NYSE:DHX), 51job, Inc. (NASDAQ:JOBS), LiveDeal, Inc. (NASDAQ:LIVE), Hudson Highland Group, Inc. (NASDAQ:HHGP), ManpowerGroup (NYSE:MAN), Volt Information Sciences, Inc. (NYSE:VOL), Mastech Holdings, Inc. (AMEX:MHH), General Employment Enterprises, Inc. (AMEX:JOB), Robert Half Intl. Inc. (NYSE:RHI), Kelly Services, Inc. (NASDAQ:KELYA), SFN Group Inc (NYSE:SFN), Barrett Business Services, Inc. (NASDAQ:BBSI), Kforce Inc. (NASDAQ:KFRC) and TrueBlue, Inc. (NYSE:TBI).

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

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com