Earnings Preview: Monster Worldwide

Monster Worldwide (MNST) is expected to report Q4 earnings Thursday with a conference call scheduled for 5:00 pm ET.

Guidance

Analysts are looking for Monster to post Q4 EPS of 38c on revenue of $352.68M. The consensus range is 36c to 42c for EPS, and revenue range of $336.84M to $360.30M, according to First Call. On January 22 Monster reiterated its October FY07 revenue guidance of $1.345B to $1.365B vs. consensus of $1.35B. The softening of the labor market is affecting Monster. The unemployment rate recently jumped to 5% from 4.7%, the biggest one month gain since October 2001, and temporary employment, which usually indicates the health of the employment market, was flat in December. Monster has strong exposure in international markets, but most analysts believe it may not be enough to help offset weakness in the U.S.

Analyst analysis

Wachovia rated Monster Market Perform because they think the North American careers segment will continue to weaken. Bear Stearns rated the company Outperform citing valuation reflects a good risk reward. Bear also expects Monster to provide an in-line report and give conservative Q1 and 2008 guidance.