Updated from July 30
Shares in online employment company
surged 7% Thursday after the company posted a stronger-than-expected second quarter amid a difficult U.S. job market.
Citing expense control and an improving performance at its TMP ad business, the company posted earnings Wednesday evening that beat Wall Street estimates by a penny and also topped revenue expectations. Still, the latest quarter's results represented a drop from year-ago comparable numbers.
For the second quarter ended June 30, Monster posted a continuing operations profit of $10.1 million, or 9 cents a share, reversing the year-ago continuing operations loss of $31.1 million, or 28 cents a share. Revenue slipped to $167.2 million from $177 million a year earlier. On a so-called non-GAAP adjusted basis, excluding costs and charges, the year-earlier operating profit was 15 cents a share.
"It was a good quarter for the company, driven by continued progress and execution of Monster Worldwide's business strategies and aggressive expense management," CEO Andrew J. McKelvey said. He said the company "continued to make progress in key vertical markets, such as staffing, health care and diversity."
The second-quarter numbers come as other Internet companies note a difficult environment for the online job-search business. Competition is also rising in the sector in the wake of
acquisition of a leading Monster rival, HotJobs.com.
Earlier this month Yahoo! CFO Susan Decker said on the company's earnings call, "While hiring conditions remain tight in the U.S., we are encouraged that HotJobs demonstrated revenue stability and market share gains, amidst difficult industry conditions."
For its part, Monster has been presenting numbers on a continuing operations basis to account for its first-quarter spinoff of its executive search unit as
changed its name this spring from TMP Worldwide in an effort to emphasize the jobs Web site over its money-losing advertising and communications unit.
On Thursday, Monster rose $1.67 to $25.16.