Online employment solutions provider Monster Worldwide, Inc. (MWW) Thursday reported a decrease in net profit for the third quarter of fiscal 2009, hurt mainly by lower revenues in a challenging global recruitment market. However, adjusted earnings per share beat Street estimates by a penny. The stock is losing in morning trade, currently down 7% on the NYSE.
For the third quarter, the New York-based company's net earnings were $32.75 million or $0.27 per share compared to $42.78 million or $0.35 per share in the prior year period.
On an adjusted basis, earnings from continuing operations plunged to $1.70 million or $0.01 per share from $48.00 million or $0.40 per share in the 2008-year period.
Adjusted results exclude a $32 million benefit from income tax adjustment related to a reversal of an income tax liability for uncertain tax positions. Adjusted results also exclude a $0.9 million net benefit resulting from pre-tax pro forma adjustments, which include a gain on legal settlements totaling $6.85 million.
On an average, 18 analysts polled by Thomson Reuters expected the company to report breakeven earnings per share for the quarter. Analysts' estimates typically exclude special items.
Revenues for the quarter dropped 35% to $214.53 million from $332.19 million in the third quarter of fiscal 2008, reflecting lower global demand for recruitment advertising services. Analysts expected the company to generate revenues of $216.71 million during the quarter.
The operator of job site Monster.com said it generated 42% of its revenues for the third quarter outside the US and that total revenues were negatively impacted by $7.4 million from unfavorable foreign exchange rates.
On a segmental basis, revenues from careers-North America were $95.20 million versus $155.17 million, careers-International segment generated revenues of $84.74 million versus $142.44 million, while revenues from internet advertising and fees rose slightly to $34.59 million from $34.58 million a year ago.
Total operating expenses incurred by the company in the three-month period fell to $211.58 million from $269.62 million in the 2008-year period.
In the preceding second quarter, Monster had reported a net loss of $1.40 million or $0.01 per share compared to net income of $30.83 million or $0.25 per share in the prior-year quarter. Total revenues for the second quarter dropped 37% to $223.10 million from $354.30 million in the second quarter of fiscal 2008.
For the nine-month period, the company's net income plunged to $21.04 million or $0.17 per share from $96.20 million or $0.79 per share in the comparable period prior year.
Adjusted earnings from continuing operations for the period were $5.57 million or $0.05 per share versus $127.55 million or $1.05 per share in the 2008-year period. Year-to-date revenues were $691.99 million versus $1.05 billion in the 2008-year period.
At September 30, Monster's deferred revenue balance was $266 million compared with $412 million in the same period last year.
Among peers, professional staffing company Kforce Inc. (KFRC) is scheduled to announce its third quarter results on November 3, 2009. Analysts currently expect Kforce to report earnings of $0.07 per share on revenues of $223.06 million for the quarter.
In Thursday's regular trading session, MWW is currently trading on the New York Stock Exchange at $15.42 per share down $1.16 or 7.00% on a volume of 975,299 shares. In the past 52-week period, the stock has been trading in a range of $5.95 to $19.28.
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