Monster Saw Itself in the Mirror (MNST)

Monster Worldwide, Inc. (MNST-NASDAQ) is down more than 11% after the open on new internal forecasts of Q1 revenue in the range of $328 to $329 million, below the revenue outlook of $330-$338 million provided on February 1, 2007. Consensus was $333 million, so it is forecasting a 1% shortfall. 

It is hedging with good comments, though.  The expected revenue increase of approximately 28% for the first quarter reflects continued rapid revenue growth in the Company’s International Careers segment, and reduced growth rates in the North America Careers and Internet Advertising & Fees businesses.  It continues to expect its financial results for the year 2007 to be within the ranges provided in the Business Outlook provided on February 1, 2007. The Company continues to achieve greater operating efficiencies and manage costs tightly, while also funding important growth initiatives within the overall strategic growth plan. Monster Worldwide maintains a positive view toward what it believes are significant growth opportunities within the global online recruitment and Internet advertising markets.

The main punishment is coming from this still being deemed as a hi-beta name in a cyclical sector that is deemed "at-risk" whenever the economy is softening.  After a drop like this, there will probably be many analyst calls.  Other employment related stocks are down as well: Korn Ferry (KFY) -1% at $23.07; Labor Ready (LRW) -4% at $18.30 was cut at Goldman Sachs today; Robert Half (RHI) -3% at $36.20; ManPower (MAN) -2.5% at $73.20; Administaff (ASF) -1% at $35.21.

Jon C. Ogg
April 4, 2007

Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.