Monster Beats Estimates, Boosts Share Buybacks

Monster Worldwide swung to a quarterly net profit of $33.3 million ($0.25/share) Wednesday, having lost $83.8 million ($0.64/share) last year when it took a loss on a unit sale. Revenue of $337 was up 25% from last year's $286 million, and just above analyst estimates of $336M. Adjusted earnings of $0.35/share beat analyst estimates by $0.02. Operating margin was up 2% to 21% q/q. Monster also boosted it share repurchase program by $100 million to $350 million. During the conference call, Monster said it is not seeing a carryover of U.S. economic weakness into international markets, and that it believes the global economy is more resilient with regard to a U.S. downturn than has been seen in previous cycles (full earnings call transcript later today). Monster said it holds $627 million in cash. "We believe our strong balance sheet will support the Company's growth opportunities as we work toward building long term sustainable value for our customers, shareholders and dedicated associates across the globe," CEO Sal Iannuzzi said in a press release. In a Barron's feature last weekend, editor Andrew Bary said many believe the company isn't getting ample credit for a shift in help-wanted ad revenue to the internet (full story). Monster shares jumped 5.35% in extended trading, having lost 3.1% during regular hours.

Sources: Press release
Commentary: A Monster of a Deal - Barron's • Most Attractive Stocks On A PEG Basis • Monster Worldwide: Likely Takeover Target
Stocks to watch: MNST. Competitors: KFRC
Earnings call transcript: Monster Worldwide Q2 2007

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