Monster shares fall following 3Q profit decline

posted: 25 DAYS 15 HOURS AGO

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HARTFORD, Conn. -Shares of Monster Worldwide Inc. fell Friday, a day after the online job search site posted a 23 percent decline in its third-quarter earnings.

Analyst James Janesky of Stifel, Nicolaus said in a client note that the results show demand for online recruitment services continued to worsen in the quarter.

"The pace of decline continues to improve from what we considered unsustainable levels seen in late 2008, early 2009," Janesky said. "However, demand continued to deteriorate nonetheless during the third quarter of 2009."

Monster earned $32.8 million, or 27 cents per share, for the three months ended Sept. 30 compared with $42.8 million, or 35 cents per share, a year ago. Excluding an income tax benefit, it earned a penny per share.

Analysts polled by Thomson Reuters, which tend to strip out one-time gains and losses from their estimates, expected break-even earnings per share.

Janesky said that exceeding analyst expectations was "mainly expense driven" and he slightly increased his 2009 earnings estimate to 4 cents per share from 3 cents.

He reduced his 2010 estimate to 7 cents per share from 10 cents on higher expenses offsetting increased revenue from Monster's Internet and advertising fees.

Analysts surveyed by Thomson Reuters expect Monster to earn 5 cents per share this year and 13 cents per share for 2010.

Janesky maintained a "Hold" rating.

Shares fell 69 cents, or 4.4 percent, to $15.28 in morning trading.

2009-10-30 11:31:21