Monster (NYSE:MWW) will announce its Q2 2011 earnings on Thursday. For this quarter, we will focus on the impact of Monster’s successful integration with Yahoo’s HotJobs platform in Q1 and the effect it might have on its career services divisions. We would also closely follow the Internet advertising & fees division that saw revenues stay flat in Q1 2011 as military recruitment declined for the first quarter of 2011. Monster competes in the online job search market with niche players like careerbuilder.com and jobcentral.com. It also faces growing competition from social networks like LinkedIn (NYSE:LNKD), Facebook and Craigslist.
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We currently maintain $14 price estimate for Monster stock, which is slightly above the current market price
Career Services Show Promise this Quarter
Data from recent months shows a positive development in the U.S. employment index, which has grown by about 6% year-on-year in Q2 2011.  Monster has also managed to increase unique visitors on its career ad network (CAN), which contributed to about 10% of total bookings for its Career Services North America division in Q1 2011. 
According to comScore data, unique visitors to CAN increased from about 72 million in Apr 2011 to almost 78 million in Jun 2011.  The steady improvements in U.S. job market as well as the completed integration of Monster with Yahoo’s HotJobs platform, which should direct additional traffic to Monster’s job portal.  Given these developments, we expect to see an improvement in new job postings for Monster’s North American Career Services. Revenue growth for this division should also be consistent with Q1 2011 figures staying close to 20%-25%.Notes: