Monster Worldwide Inc. (NYSE:MWW) reported second-quarter 2016 adjusted loss (including stock-based compensation but excluding one-time items) of 4 cents per share as against the Zacks Consensus Estimate of breakeven.
Revenues of $150.9 million not only missed the Zacks Consensus Estimate of $156.8 million but also declined 16.4% year over year.
Nonetheless, the company’s shares shot up over 26% in yesterday’s trading session in response to the news of its takeover by Randstad for $429 million.
Quarter Details
Revenues from Careers – North America were $103.7 million while that from the Careers – International segment were $47.2 million.
The company reported operating expenses of $301.5 million, an increase of over 83% year over year.
The company reported adjusted EBITDA from continuing operations of $9.2 million compared with $25.7 million reported in the year-ago quarter. Cash EBITDA (i.e., operating income excluding depreciation, amortization, non-cash impairment and stock-based compensation) was $6.98 million, down from $17.76 million reported in the prior year quarter.
Acquisition Details
Along with the earnings release, Monster Worldwide announced that Amsterdam-based staffing agency, Randstad will be acquiring its assets for about $429 million or $3.40 per share in cash. The transaction is expected to close in the fourth quarter of 2016.
Randstad aims to expand its digital footprint with this acquisition. Post acquisition, Monster will likely remain a separate and independent entity.
Monster has been struggling to revive its business for a long time now. The company has been seeing persistent weakness in its transactions business in key regions like North America and Canada. Even its re-branding and cost-cutting initiatives yielded little results as evident from this quarter’s results. This announcement comes as a respite for investors.
Monster currently has a Zacks Rank #4 (Sell). Some better-ranked tech stocks in the same space include Bitauto Holdings Limited (NYSE:BITA) , CafePress Inc. (NASDAQ:PRSS) and GrubHub Inc. (NYSE:GRUB) . All three stocks carry a Zacks Rank #2 (Buy).
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