Monster Worldwide Third Quarter Earnings Sneak Peek

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Monster Worldwide, Inc. (NYSE:MWW) will unveil its latest earnings on Thursday, November 8, 2012. Monster Worldwide provides global online employment solutions and services in at least 50 countries around the world.

Monster Worldwide, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 5 cents per share, a decline of 61.5% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. Analysts are projecting profit to rise by 48.6% versus last year to 19 cents.

Past Earnings Performance: The company fell in line with estimates last quarter after topping forecasts the quarter before. After coming in above the mean estimate by one cent in the first quarter, the company fell in line with expectations by reporting profit of 6 cents per share last quarter.

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A Look Back: In the second quarter, profit fell 56.3% to $4.8 million (4 cents a share) from $11 million (9 cents a share) the year earlier, meeting analyst expectations. Revenue fell 12.1% to $237 million from $269.7 million.

Stock Price Performance: Between September 7, 2012 and November 2, 2012, the stock price had fallen $1.33 (-18%), from $7.40 to $6.07. The stock price saw one of its best stretches over the last year between August 2, 2012 and August 9, 2012, when shares rose for six straight days, increasing 9.7% (+59 cents) over that span. It saw one of its worst periods between November 11, 2011 and November 25, 2011 when shares fell for 10 straight days, dropping 26% (-$2.31) over that span.

Wall St. Revenue Expectations: On average, analysts predict $234 million in revenue this quarter, a decline of 9.7% from the year-ago quarter. Analysts are forecasting total revenue of $948.5 million for the year, a decline of 8.8% from last year’s revenue of $1.04 billion.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of three-straight quarters of revenue declines. Revenue fell 2% in the fourth quarter of the last fiscal year and 5.9% in first quarter before falling again in the second quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.0 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, a ratio less than one could indicate a company may have difficulty meeting current obligations.

Analyst Ratings: There are six out of 10 analysts surveyed (60%) rating Monster Worldwide a buy.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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