Monster Worldwide Inc. shares slipped 0.57% yesterday after the company provided preliminary revenue guidance for third-quarter 2016.
The company projects quarterly revenues between $143 million and $145 million. Investors were not pleased as this implies a sales decline of about 14% from the prior-year quarter figure of $167.1 million.
CEO Tim Yates stated "Q3 continued to be a challenging business environment." He further clarified "While we are gaining traction in North America as a result of our new product initiatives and pay per click business, the continued pressure on our core traditional product offerings combined with the weakness in bookings in prior quarters has resulted in a decline in third quarter 2016 revenue in North America of 16% on a year over year basis."
The company has been going through a tough time ever since it announced its takeover by Dutch firm, Randstad in Aug 2016. This is because its biggest shareholder, MediaNews (11.6% stake in Monster) continues to vehemently oppose the deal saying it has “no confidence” in the existing board and CEO owing to their repeated failures to take correct “strategic and operational decisions to maximize value for shareholders”.
At present, Monster Worldwide carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the same space include Asure Software, Inc. (ASUR - Free Report) , LightInTheBox Holding Co., Ltd. (LITB - Free Report) and GoDaddy Inc. (GDDY - Free Report) . While Asure Software and LightInTheBox both sport a Zacks Rank #1 (Strong Buy), GoDaddy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Estimates for all three stocks have improved over the last 30 days. For the current year, estimates for Asure Software have gone up from 15 cents to 19 cents. For LightInTheBox, the loss estimate has narrowed from 18 cents to a loss of 7 cents for the current year while the estimate for GoDaddy has also improved from a loss of 6 cents to a loss of 2 cents.
MONSTER WWD INC Price and Consensus
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