Monster’s Stock Drops Over Disappointing Q1 Results, Q2 Guidance

Monster Worldwide’s (NASDAQ:MWW) below-par first quarter results and its disappointing guidance for the second quarter this year resulted in the company’s stock nosediving following its earnings release last week. Monster’s overall revenue declined 9% year-over-year (y-o-y) to $158 million and missed market expectations of $161 million owing to subdued demand in North America, where sales dropped by 11%. In terms of the bottom line, the company reported adjusted earnings of $0.07 per share, which was in line with market expectations. For Q2 2016, Monster expects earnings of $0.00-$0.04 per share, which is below analyst consensus estimates of $0.08.

While the European business and new products continued to show promising results during the first quarter, increased demand in these two areas alone will not be sufficient to accelerate growth for the company. Accordingly, Monster is likely to face continued headwinds in expanding its top line in the near future.

Have more questions about Monster? See the links below:

• How Has Monster’s Revenue Composition Changed In The Last Five Years?
• What Is Groupon’s Fundamental Value Based On Expected 2015 Results?
• What Is Monster’s Revenue And EBITDA Breakdown By Operating Segments?

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