Monster’s Revenue, EPS Misses Estimates Amidst Acquisition News

Monster Worldwide (NASDAQ:MWW) announced its results for the second quarter on Tuesday, August 9th. The major news in the company’s earnings release was about its agreement to be acquired by Randstad Holding for $429 million at a purchase price of $3.40 per share, which was around 23% ahead of the company’s trading price on Monday, August 8th. Randstad is expected to allow Monster to operate as an individual entity. The acquisition is expected to close in the fourth quarter of 2016.

For the quarter ended June 30th, the company’s revenue declined 10% over the previous year quarter to $150.9 million and missed market expectations of $157 million. This was primarily due to the decline in revenues from North America, which declined 14% on a year on year basis to $103.7 million. The company reported an operating loss of $150.6 million, compared to net income of $3 million in the prior year quarter. The significant drop in the company’s income was primarily due to goodwill impairment charges of $142 million. This resulted in the company reporting a net loss of $124 million or $1.40 per share for the quarter, which was below than the market expectations of 4 cents a share.

In view of its decision to get acquired, the company cancelled its earnings call scheduled for the day.

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