Why Monster Worldwide Shares Roared Higher

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Monster Worldwide (NYSE: MWW  ) roared higher today, up by as much as 13% after the company reported first-quarter earnings.

So what: Revenue from continuing operations was $212 million, slightly ahead of consensus estimates of $210.5 million. Earnings were in line with forecasts at $0.08 per share on a non-GAAP basis. CEO Sal Iannuzzi said the global economy continues to weigh on the company's results due to a "tepid" employment market.

Now what: Monster has "substantially" completed its corporate restructuring and is on track to cut operating costs by $130 million annually. The company has been trying to sell itself but hasn't made much progress. However, Monster is reassuring investors with a hefty $200 million share repurchase program in the event that no sale materializes. With Monster's market cap currently just over $500 million, that authorization would buy back a substantial chunk of shares outstanding.

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  • Report this Comment On May 03, 2013, at 9:13 AM, BluAdept wrote:

    This upward move has me more perplexed than ever. Monster's Net income fell 17% and Revenue fell 9.3 %. Certianly the weak job market isn't improving things. Earnings of 8 cents per share was in line with expectations. Even if the company is trying to buy back some of the shares, restructuring is rarely ever seen as a good thing and often point to companies in serious trouble, ie Monster. There are no rumors circulating of any companies interested in acquiring Monster. Overall, Monster continues to lose money at an extravagant pace, no matter how you cut that, it can't be a good thing and doesn't explain the price jump.

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