The 10-second takeaway
For the quarter ended March 31 (Q1), Monster Worldwide met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped. Non-GAAP earnings per share increased significantly. GAAP earnings per share increased.
Margins grew across the board.
Monster Worldwide tallied revenue of $212.0 million. The nine analysts polled by S&P Capital IQ predicted sales of $210.5 million on the same basis. GAAP reported sales were 14% lower than the prior-year quarter's $246.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.08. The 10 earnings estimates compiled by S&P Capital IQ forecast $0.08 per share. Non-GAAP EPS of $0.08 for Q1 were 100% higher than the prior-year quarter's $0.04 per share. GAAP EPS of $0.04 for Q1 were 33% higher than the prior-year quarter's $0.03 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 54.0%, 330 basis points better than the prior-year quarter. Operating margin was 6.6%, 300 basis points better than the prior-year quarter. Net margin was 2.4%, 90 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $207.7 million. On the bottom line, the average EPS estimate is $0.08.
Next year's average estimate for revenue is $831.9 million. The average EPS estimate is $0.33.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 249 members out of 323 rating the stock outperform, and 74 members rating it underperform. Among 91 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 66 give Monster Worldwide a green thumbs-up, and 25 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Monster Worldwide is outperform, with an average price target of $7.50.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.