* Q2 profit falls 56 pct, revenue falls 12 pct
* Sees Q3 EPS $0.02-$0.07 vs average estimate $0.09
* Company says strategic review on track
* Shares fall 20 pct to lifetime low
Aug 2 Monster Worldwide Inc's
second-quarter profit more than halved from a year earlier and
the online recruitment firm forecast weak results for the
current quarter due to soft demand in Europe, sending its shares
down 20 percent to a record low.
The company did not provide an update on the strategic
review it announced five months ago except to say that it was
proceeding as planned.
"Over the second quarter, the situation (in Europe) did
deteriorate further in that more countries slowed down," Chief
Executive Sal Iannuzzi said on a call with analysts. "The issue
and the slowdown or the caution has spread to the entire
The parent of Monster.com, which has been hit by a weak job
market and growing competition from social networking websites
such as LinkedIn, said it expected to earn between 2
cents and 7 cents per share in the third quarter. Wall Street
analysts had forecast earnings of 9 cents per share.
The company said revenue was expected to decline by 6 to 12
percent, while bookings -- an indication of future revenue --
was forecast to be flat to down 10 percent.
"The macroeconomic environment is more challenging than it
was a year ago (particularly in Europe) and currency trends are
a headwind, but the company also appears to be still struggling
with competitive pressures," William Blair analyst Timothy
McHugh said in a note to clients.
Monster retained Stone Key Partners and Bank of America
Merrill Lynch in March to review strategic alternatives,
including the sale of all or part of the company.
"We are aggressively pursuing a robust process as we speak,"
Iannuzzi said on the call.
Monster's net income fell to $4.8 million, or 4 cents per
share, in the latest quarter from $11.0 million, or 9 cents per
share, a year earlier.
Excluding items, the company earned 6 cents per share, in
line with analysts' estimates, according to Thomson Reuters
Revenue fell 12 percent to $237 million, while bookings fell
Monster's shares, which began trading in 1996, fell 20
percent to a low of $5.72 on the New York Stock Exchange on
Thursday. They were trading at $6.00 at midday.