Monster Worldwide Inc., which operates its namesake jobs website, posted a better-than-expected second-quarter profit Thursday, but the company's stock sank as a new government report suggested that fewer people might be looking for work.
Shares in the company fell $1.06, or 8.1 percent, to $12.08 in afternoon trading after the Labor Department said applications for unemployment benefits had fallen to their lowest level in nearly four months.
Monster Worldwide's net income for the three months ended June 30 came to $11 million, or 9 cents per share, compared with a loss of $3 million, or 2 cents per share, in the same period a year earlier. Last year's quarter included a net $2.8 million charge consisting largely of transaction costs related to the acquisition of Yahoo HotJobs and severance costs.
Revenue reached $269.7 million, up 25 percent from $214.9 million in the second quarter of 2010. Revenue in the latest quarter was boosted by a 28 percent increase in its career business to $236 million.
Bookings, a key indicator of future revenue, rose 26 percent to $262 million.
Analysts surveyed by FactSet had estimated earnings of 8 cents per share on revenue of $264.9 million.
The company forecast adjusted earnings of 10 to 14 cents per share for the third quarter, in line with analysts' estimate of 12 cents per share. The company expects revenue of $260 million to $270 million, while analysts expect $279 million.
Monster Worldwide projected full-year per share earnings of 40 cent to 48 cents on revenue of $1.07 billion to $1.12 billion. Analysts expect earnings of 42 cents per share and revenue of $1.11 billion.
The company's outlooks exclude about $15 million in revenue from arbitrage lead generation for the third quarter and $29 million for the full year. The company is exiting that business.
(This version CORRECTS explanation for company's revenue estimates.)