Why Monster Worldwide, Inc. Stock Dropped 17% in May

By Jeremy BowmanMarketsFool.com

Image Source: Monster.

Continue Reading Below

What:Shares ofMonster Worldwide, Inc. tumbled 17% last month, according to data from S&P Global Market Intelligence, as a weak first-quarter earnings report sunk the stock.

MWW data by YCharts

So what:The employment-based website delivered disappointing sales results and guidance in its earnings report, sending shares down 10% on May 5. Revenue fell 9% to $157.8 million, missing estimates of $159.9 million.

Monster's revenue has actually been declining for years. The company's prominence in job-hunting has been usurped by companies likeLinkedinand other platforms.

Adjusted earnings per share of $0.07 matched analyst expectations, though investors focused instead on the top-line performance. CEO Tim Yates said the company was making steady progress in implementing its All the Jobs, All the People strategy, and noted improving trends in Europe.

Now what:Monster's guidance called for revenue growth to return to the low-to-mid-single digits by the fourth quarter, and earnings per share of breakeven to $0.04 for the current quarter. That was below analyst expectations of $0.07.

Despite management's optimism, Monster's profit and revenue have consistently fallen over the last five years, and there seems to be little long-term value in the stock. Earnings per share is expected to be just $0.28 this year and I expect the company's struggles to continue.

The article Why Monster Worldwide, Inc. Stock Dropped 17% in May originally appeared on Fool.com.

Jeremy Bowman has no position in any stocks mentioned. The Motley Fool owns shares of and recommends LinkedIn. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright 1995 - 2016 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.