Monster Worldwide Inc. (MNST) Lowers Guidance
Job search web site owner Monster Worldwide (MNST, 41.73, -6.78) has seen a monster reaction in its stock after the company reduced its first quarter revenue guidance.
Specifically, Monster said it sees first quarter revenues of $328 million to $329 million versus its previous revenue outlook provided on Feb. 1 of $330 million to$338 million. The current consensus estimate is $333.7 million.
The revised guidance translates to a revenue increase of approximately 28% for the first quarter, but the company noted it reflects reduced growth rates in the North America Careers and Internet Advertising & Fees businesses. Monster anticipates continued rapid revenue growth in its International Careers segment.
Despite the revision, Monster Worldwide said it continues to expect its financial results for the year 2007 will be within the ranges provided in the Feb. 1 business outlook. At that time, the company said it anticipated revenue of $1.36 billion to $1.41 billion for the year.
The market hasn't been appeased by that affirmation, though, as it is choosing to remain fixated on the first quarter guidance that has created doubts about growth prospects and the stock's premium P/E multiple which was fixed at 30.1x estimated FY07 earnings prior to the revenue warning.
We've taken a bullish view on Monster Worldwide in the past, noting that the company has strong growth prospects, particularly in international markets. Furthermore, the company looks like an appealing takeover candidate.
With Monster still poised to deliver strong double-digit growth for the first quarter, and given that its full-year view remains unchanged, we think today's response is an over-reaction and would use the weakness as a buying opportunity.
--Christine Marie Nielsen, Briefing.com
Specifically, Monster said it sees first quarter revenues of $328 million to $329 million versus its previous revenue outlook provided on Feb. 1 of $330 million to$338 million. The current consensus estimate is $333.7 million.
The revised guidance translates to a revenue increase of approximately 28% for the first quarter, but the company noted it reflects reduced growth rates in the North America Careers and Internet Advertising & Fees businesses. Monster anticipates continued rapid revenue growth in its International Careers segment.
Despite the revision, Monster Worldwide said it continues to expect its financial results for the year 2007 will be within the ranges provided in the Feb. 1 business outlook. At that time, the company said it anticipated revenue of $1.36 billion to $1.41 billion for the year.
The market hasn't been appeased by that affirmation, though, as it is choosing to remain fixated on the first quarter guidance that has created doubts about growth prospects and the stock's premium P/E multiple which was fixed at 30.1x estimated FY07 earnings prior to the revenue warning.
We've taken a bullish view on Monster Worldwide in the past, noting that the company has strong growth prospects, particularly in international markets. Furthermore, the company looks like an appealing takeover candidate.
With Monster still poised to deliver strong double-digit growth for the first quarter, and given that its full-year view remains unchanged, we think today's response is an over-reaction and would use the weakness as a buying opportunity.
--Christine Marie Nielsen, Briefing.com
Labels: MNST, Monster Worldwide Inc.
posted by Stock Administrator @ 10:02 PM
1 Comments:
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