Earnings estimates have moved up in the last few days after
) reported results for the first quarter of 2012, which beat the
Zacks Consensus Estimates by a penny. Excluding one-time charges,
net income came in at 4 cents per share.
This prompted most of the analysts covering the stock to up
their estimates, leading to an increase in the Zacks Consensus
Estimate for 2012.
As many as seven out of the eleven analysts covering the stock
increased their estimates for 2012, while three moved in the
Consequently, the current Zacks Consensus Estimate is up by 2
cents in the last 30 days to $0.27.
It was rumored earlier that management might sell a part or all
of its business as the company has been facing tough times for
quite awhile. Therefore, Monster Worldwide is considering strategic
alternatives to boost shareholder value in the coming months to
combat the extreme situation.
Monster retained Stone Key Partners LLC and BofA
Merrill Lynch as its financial advisors in connection with its
renewal of strategic alternatives done previously. As per
management, the review is still in infancy stage and the company
will not provide additional details as of now.
In January, Monster announced a series of cost savings
initiatives amid uncertain global environment. These activities
include a workforce reduction of approximately 400 associates, or
7% of its full-time staff on a global basis, consolidation of
certain office facilities along with control in discretionary
Monster stated that the near-term priorities for the company
includes executing on its share buyback program and return excess
cash to shareholders, focusing on incremental growth opportunity
with SeeMore and Government Solutions and implementing $100 million
cost savings initiative to increase marketing campaign and sales
The slowdown in the economy has adversely affected the company's
business. The company continues to be burdened by the cyclical
weakness across its business, leading to a drastic decline in
We continue to maintain a Neutral recommendation on the stock.
Our recommendation is supported by Zacks #3 Rank, which translates
into a short-term rating of Hold.
MONSTER WWD INC (MWW): Free Stock Analysis
To read this article on Zacks.com click here.