Monster Worldwide and Omnicom Group Under StockCall's Microscope: Advertising Agencies Struggle with Lower Revenue

Monster Worldwide and Omnicom Group Under StockCall's Microscope: Advertising
                     Agencies Struggle with Lower Revenue

PR Newswire

LONDON, February 13, 2013

LONDON, February 13, 2013 /PRNewswire/ --

While the markets are being dominated by Dell Buyout deal news, there are
other merger and acquisition stories doing the rounds. One of them pertains to
Monster Worldwide Inc. (NYSE: MWW), the online recruitment giant. The company
is rumored to be looking for a potential buyer. The rumor points to the
problems faced by web 2.0 advertising companies. Some companies are performing
better amid economic uncertainties. Omnicom Group Inc. (NYSE: OMC) neutralized
its weak European operations by posting better performance in the U.S. market.
The advertising industry is expected to languish for a while as the global
economy picks up its pace again. StockCall has released full comprehensive
research on Monster Worldwide and Omnicom Group Inc. and these free technical
analyses can be downloaded by signing up at

Monster Worldwide Looks for Suitors

Monster Worldwide is reeling under losses as the online recruitment company
lost $73 million in the fiscal fourth quarter, down from $10.9 million in net
income it had earned for the corresponding quarter of the last year. It is not
just the profitability suffering, the company also faced 10 percent decline in
its revenue. No wonder, Monster Worldwide has decided to put itself on the
block. The company is looking at various options including parts of its
business. It recently disposed of its ChinaHR division. The company's
management announced that the process is taking longer than expected. Free
technical analysis on Monster Worldwide Inc. available by signing up at 

Slowdown in the general economy and hiring needs had a direct impact on the
company's profitability. Monster Worldwide provided conservative guidance for
the first quarter as it expects its earnings to be in the range of 6 to 10
cents per share, while analysts expected it to earn 8 cents per share in
income. Emergence of new social recruiting concept has also marred the future
prospects of the company.

Monster Worldwide is taking steps to curb its downfall. The company is cutting
its costs to improve profitability. The company CEO stated: "As a leaner, more
focused company, we are concentrating our resources on our core markets and
are aggressively taking the steps necessary to strengthen our business." So
far, these actions have not succeeded in bringing discernible results. The
stock has only mild upside to it.

Omnicom Beats Analysts' Estimates

Omnicom Group, on the other hand, handily beat the street's estimates by
posting $1.13 per share in EPS. The company's revenue also grew 2.4 percent to
$3.94 billion. It surpassed analysts' estimates of $1.09 per share in EPS and
$3.93 billion in revenue. The company operates globally hence neutralize
regional impacts well. Omnicom CFO stated, "Our large European markets like
Russia continued to perform largely well while the UK, France and Germany
remained weak and in aggregate the Eurozone markets were down 3.7 percent."
Register today and access the free research on Omnicom Group Inc. at 

Like Monster Worldwide, Omnicom Group also has tepid view of the near future
performance. Its CEO cautioned: "While the macroeconomic environment appears
to be stabilizing and even improving in some areas, issues in several markets
remain unresolved." Omnicom stock offers good value with its 18 percent price
growth and 2.14 dividend yield. The stock is expected to perform moderately
well as the company carries out corrective measures and improves its
profitability. The advertising company is performing better in the U.S.
market, thus countering the weak performance in Europe and Asia.

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