In what could provide an insight into the global employment situation, recruitment major monster has decided to lay off 400 employees from the organization. This against a backdrop of declining revenues and also as part of the company’s restructuring policy. The cuts, along with other planned moves, are expected to save $100 million per year. They were announced as Monster reported fourth-quarter net income that fell short of analysts’ expectations, even as it slashed payroll and marketing costs to cope with a revenue decline.
Commenting on the results CEO Sal Iannuzzi stated that he does not expect the revenues to grow convincingly over the next two quarters as there is considerable pressure in the US and European markets. The top line growth was not as per analyst’s expectations and this resulted in the stock dropping over the trading hours. Net income in the three months to Dec. 31 came to $10.9 million, or 9 cents per share, from $501,000. Revenue fell 2 percent to $250 million from $255 million, also below the $259 million.
MWW shares recently traded at $7.21, down $1.77, or 19.71%. They have traded in a 52-week range of $6.34 to $21.62. Volume today was 7,842,207 shares versus a 3-month average volume of 3,416,260 shares. The company’s trailing P/E is 21.08, while trailing earnings are $0.34 per share. It forecast a bookings decline of 6 to 10 percent, with revenue estimated down 3 to 7 percent. That suggests revenue of $254 million to $243 million, below the $262.5 million expected by analysts.
The company has been investing heavily in creating and developing mobile apps and social media partnerships. These have created potential in the future and will create a new revenue vertical for the company. One can look at buying the stock at looking at numbers over the next two quarters.