Monster Worldwide, Inc. is set to report second-quarter 2016 results on Aug 9. It delivered a positive earnings surprise of 25.00% in the last quarter. It has a positive four-quarter average earnings surprise of 16.04%.
Let’s see how things are shaping up for this announcement.
Factors to Consider
In the last quarter, though Monster Worldwide surpassed earnings estimates, its sales missed the same. Revenues were also down significantly year over year. Even the guidance for the second quarter was lower than expected.
The company has been seeing weakness in its transactions business in key regions like North America and Canada. We expect that going ahead, given an uncertain macroeconomic outlook, employers might continue to remain conservative with their hiring budget. Further, competition has intensified over the last few years in the online employment market. Many recruiters are already using alternative social media sites such as LinkedIn . Though Monster is now working to build its social media presence, the headwinds will likely remain in the near term.
Nonetheless, there can be some respite in the form of re-branding and cost-cutting initiatives that are expected to boost its growth over the long term. In June, the company acquired a mobile-based job search startup, Jobr which has a ‘Tinder-like’ approach to its platform. This will enable Monster to attract new users, especially the younger generation, which is more inclined toward mobile applications compared to the web.
This apart, the company will also benefit from its collaborations with companies like kununu and Crelate Inc.
For the second quarter, the company expects non-GAAP earnings per share from continuing operations in the range of breakeven to 4 cents, excluding $2 million to $3 million of stock-based compensation and $1.3 million of non-cash debt discount amortization pertaining to the convertible debt.
Earnings Whispers
Our proven model does not conclusively show that Monster Worldwide is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here, as you will see below.
Zacks ESP: Monster Worldwide has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 2 cents.
Zacks Rank: Monster Worldwide’s Zacks Rank #3 when combined with a 0.00% ESP makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.
Stocks to Consider
Here are some stocks that, as per our model, have the right combination of elements to post an earnings beat this quarter:
Impax Laboratories has an Earnings ESP of +3.03% and a Zacks Rank #2.
Mylan, Inc. has an Earnings ESP of +1.75% and a Zacks Rank #2.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
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Monster Worldwide (MWW) Q2 Earnings: What's in Store?
Monster Worldwide, Inc. is set to report second-quarter 2016 results on Aug 9. It delivered a positive earnings surprise of 25.00% in the last quarter. It has a positive four-quarter average earnings surprise of 16.04%.
Let’s see how things are shaping up for this announcement.
Factors to Consider
In the last quarter, though Monster Worldwide surpassed earnings estimates, its sales missed the same. Revenues were also down significantly year over year. Even the guidance for the second quarter was lower than expected.
The company has been seeing weakness in its transactions business in key regions like North America and Canada. We expect that going ahead, given an uncertain macroeconomic outlook, employers might continue to remain conservative with their hiring budget. Further, competition has intensified over the last few years in the online employment market. Many recruiters are already using alternative social media sites such as LinkedIn . Though Monster is now working to build its social media presence, the headwinds will likely remain in the near term.
Nonetheless, there can be some respite in the form of re-branding and cost-cutting initiatives that are expected to boost its growth over the long term. In June, the company acquired a mobile-based job search startup, Jobr which has a ‘Tinder-like’ approach to its platform. This will enable Monster to attract new users, especially the younger generation, which is more inclined toward mobile applications compared to the web.
This apart, the company will also benefit from its collaborations with companies like kununu and Crelate Inc.
For the second quarter, the company expects non-GAAP earnings per share from continuing operations in the range of breakeven to 4 cents, excluding $2 million to $3 million of stock-based compensation and $1.3 million of non-cash debt discount amortization pertaining to the convertible debt.
MONSTER WWD INC Price and EPS Surprise
MONSTER WWD INC Price and EPS Surprise | MONSTER WWD INC Quote
Earnings Whispers
Our proven model does not conclusively show that Monster Worldwide is likely to beat earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here, as you will see below.
Zacks ESP: Monster Worldwide has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 2 cents.
Zacks Rank: Monster Worldwide’s Zacks Rank #3 when combined with a 0.00% ESP makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.
Stocks to Consider
Here are some stocks that, as per our model, have the right combination of elements to post an earnings beat this quarter:
Impax Laboratories has an Earnings ESP of +3.03% and a Zacks Rank #2.
Mylan, Inc. has an Earnings ESP of +1.75% and a Zacks Rank #2.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>