Monster Worldwide Drops as Forecast Falls Short: New York Mover
Monster Worldwide Inc. (MWW), the Internet recruiting service exploring a possible sale, tumbled after forecasting earnings that fell short of analysts’ predictions, citing European economic weakness.
Shares fell 14 percent to $6.10 at the close in New York, the lowest since March 2009. The stock has fallen 23 percent this year. The New York-based company said earlier that earnings in the current quarter will be 2 cents to 7 cents a share. That missed the 9-cent average analyst estimate, based on data compiled by Bloomberg.
Europe, where growth is being hampered by a debt crisis, is a “big concern,” while China has also slowed “significantly,” Chief Executive Officer Sal Iannuzzi said in an interview today. Monster Worldwide’s efforts to find a buyer may be hampered by disappointing results, said Jeffrey Silber, an analyst at BMO Capital Markets in New York.
“It will be tough in this environment for them to get the price they would want on a sale,” said Silber, who rates Monster Worldwide the equivalent of buy. “The economy is shrinking in the hiring market, and that is probably the biggest factor in earnings.”
Bookings, an indicator of future sales, will be flat or down 10 percent in the current quarter from a year earlier, the company said.
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