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What: Shares of online employment specialist Monster Worldwide (NYS: MWW) were getting fired by investors today, falling as much as 20% in intraday trading after the company announced second-quarter results.
So what: There was very little that was inspiring about Monster's quarter. Revenue for the quarter ending in June fell 12% from last year, while adjusted earnings per share dropped 33% to $0.06. On the bright side, that $0.06 tally matched what analysts were expecting even though revenue fell short.
The company's outlook for the quarter ahead wasn't any more encouraging. For the three months ending in September, Monster's management sees revenue down between 6% and 12% from last year, while non-GAAP EPS is expected to drop from $0.13 to between $0.02 and $0.07. Wall Street had estimated $0.09 for the quarter.
Now what: Could things yet work out in favor of Monster shareholders? Sure. The company started a "strategic review" five months ago, which, in Wall Street parlance, typically means that it's looking for a buyer. If a buyer steps in with a nice price, that could still be a boon for shareholders.
That said, the fact that results are disappointing not only may discourage potential bidders, but it will also lower the price that buyers would be willing to pay. And in its earnings release, the company didn't really have much to say about the process, as CEO Sal Iannuzzi simply noted that it's "progressing as planned."
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The article Why Monster Worldwide's Shares Plunged originally appeared on Fool.com.
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