Monster Worldwide Shares Plunged: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Monster Worldwide (NYS: MWW) fell 10% in early trading as investors soured on CEO Sal Iannuzzi's comments about his company's prospects for the remainder of the year.
So what: Speaking during the second-quarter earnings call this morning, Iannuzzi said business had been "sluggish" all year, more so than management anticipated last fall. He also said it would be "foolish" to raise guidance heading into the back half of the year, given troubling economic conditions in the U.S. and abroad.
Now what: Mostly, it appears Iannuzzi is being conservative. Monster beat both top- and bottom-line estimates in Q2. Revenue grew 25% to $270 million, and last year's $0.02-per-share loss turned into $0.09 per share gain. Analysts had been calling for $266 million and $0.08 a share, respectively. Iannuzzi may be shirking, but fiscally, this Monster is roaring. Do you agree? Disagree? Let us know what you think using the comments box below.
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