Why Monster Worldwide (MWW) Stock is Crashing Today
On Thursday, shares of recruitment leader and career website company Monster Worldwide Inc MWW are crashing, down almost 33% in afternoon trading after the company provided disappointing first quarter fiscal 2016 earnings guidance.
Monster now projects Q1 fiscal 2016 earnings to be in the range of $0.06-$0.10 per share, much lower than Wall Street's expectation of $0.13 per share.
The company also reported its Q4 fiscal 2015 earnings before the market opened today, reporting earnings of $0.12 per share that fell in line with analysts' estimates. Revenue missed expectations of $166.94, declining 6% year-over-year to $159.2 million.
"We underperformed in North America in our transactional business as a result of competitive pressures and seasonality, as well as macro considerations in Canada," CEO Tim Yates said in a statement.
As a result of weak guidance, FBR Capital has downgraded Monster from 'Outperform' to 'Market Perform' as well as decreasing its price target for the company to $3.50 from $8.00.
Analyst William Bird said that "The rising tide of employment growth is no longer lifting all boats. At the midpoint of 2016 guidance, MWW is trading at 4.8x 2016E EBITDA, a valuation at which we believe the stock is not mispriced. Given employment market volatility, structural headwinds, and the still-small and nascent stage of new growth initiatives, we believe MWW's stock is not likely to outperform."
For more information on Monster's Q4 reported results, check out its company news release .