Market Tames Monster Worldwide

Jun 27, 2008 (Zacks Investment Research via COMTEX) -- MNST | Quote | Chart | News | PowerRating -- Monster Worldwide, Inc. (MNST) is positioned to capitalize on the improving economic conditions across the world. In addition to being leveraged to an improving job market and the increasing dominance of online recruitment, Monster has been boosting revenue through acquisitions and investments. Monster reported revenues of $370.4 million in Q1, up 12.6% y/y and 4.7% q/q, surpassing our estimate of $367 million. However, competition has intensified over the last few years in the online employment advertising market, which in our view has resulted in Monster losing share. The management stated that it would not provide any guidance for 2008 due to uncertain economic conditions. It currently appears that continued deceleration in the company's U.S. growth rate and a decision by management not to provide 2008 guidance will further increase uncertainty about the company's near-term earnings growth rate. We maintain our Hold rating on the stock. Because of a lack of current guidance and ongoing restructuring, we have adjusted our FY2008 revenue and EPS estimates to $1.49 billion and $1.40 respectively, (excluding all non-recurring items and stock options). Accordingly, we have adjusted our target price to $25 per share, based on current expectations, which implies a P/E multiple of 17.9x FY2008 EPS estimate. Read the full analyst report on MNST

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