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Why Monster Worldwide, Inc. Stock Dropped 17% in May

By Jeremy Bowman - Jun 8, 2016 at 4:19PM

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The job-hunting website continues to struggle, with revenue slipping in its latest earnings report.

Image Source: Monster.

What: Shares of Monster Worldwide, Inc. (MWW) tumbled 17% last month, according to data from S&P Global Market Intelligence, as a weak first-quarter earnings report sunk the stock.

MWW Chart

MWW data by YCharts

So what: The employment-based website delivered disappointing sales results and guidance in its earnings report, sending shares down 10% on May 5. Revenue fell 9% to $157.8 million, missing estimates of $159.9 million.

Monster's revenue has actually been declining for years. The company's prominence in job-hunting has been usurped by companies like Linkedin and other platforms.  

Adjusted earnings per share of $0.07 matched analyst expectations, though investors focused instead on the top-line performance. CEO Tim Yates said the company was making steady progress in implementing its All the Jobs, All the People strategy, and noted improving trends in Europe.

Now what: Monster's guidance called for revenue growth to return to the low-to-mid-single digits by the fourth quarter, and earnings per share of breakeven to $0.04 for the current quarter. That was below analyst expectations of $0.07.

Despite management's optimism, Monster's profit and revenue have consistently fallen over the last five years, and there seems to be little long-term value in the stock. Earnings per share is expected to be just $0.28 this year and I expect the company's struggles to continue.  

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