| By PR Newswire | Article Rating: |
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| February 13, 2013 08:01 AM EST | Reads: |
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LONDON, February 13, 2013 /PRNewswire/ --
While the markets are being dominated by Dell Buyout deal news, there are other merger and acquisition stories doing the rounds. One of them pertains to Monster Worldwide Inc. (NYSE: MWW), the online recruitment giant. The company is rumored to be looking for a potential buyer. The rumor points to the problems faced by web 2.0 advertising companies. Some companies are performing better amid economic uncertainties. Omnicom Group Inc. (NYSE: OMC) neutralized its weak European operations by posting better performance in the U.S. market. The advertising industry is expected to languish for a while as the global economy picks up its pace again. StockCall has released full comprehensive research on Monster Worldwide and Omnicom Group Inc. and these free technical analyses can be downloaded by signing up at
http://www.stockcall.com/technicalanalysis
Monster Worldwide Looks for Suitors
Monster Worldwide is reeling under losses as the online recruitment company lost $73 million in the fiscal fourth quarter, down from $10.9 million in net income it had earned for the corresponding quarter of the last year. It is not just the profitability suffering, the company also faced 10 percent decline in its revenue. No wonder, Monster Worldwide has decided to put itself on the block. The company is looking at various options including parts of its business. It recently disposed of its ChinaHR division. The company's management announced that the process is taking longer than expected. Free technical analysis on Monster Worldwide Inc. available by signing up at
http://www.StockCall.com/MWW021313.pdf
Slowdown in the general economy and hiring needs had a direct impact on the company's profitability. Monster Worldwide provided conservative guidance for the first quarter as it expects its earnings to be in the range of 6 to 10 cents per share, while analysts expected it to earn 8 cents per share in income. Emergence of new social recruiting concept has also marred the future prospects of the company.
Monster Worldwide is taking steps to curb its downfall. The company is cutting its costs to improve profitability. The company CEO stated: "As a leaner, more focused company, we are concentrating our resources on our core markets and are aggressively taking the steps necessary to strengthen our business." So far, these actions have not succeeded in bringing discernible results. The stock has only mild upside to it.
Omnicom Beats Analysts' Estimates
Omnicom Group, on the other hand, handily beat the street's estimates by posting $1.13 per share in EPS. The company's revenue also grew 2.4 percent to $3.94 billion. It surpassed analysts' estimates of $1.09 per share in EPS and $3.93 billion in revenue. The company operates globally hence neutralize regional impacts well. Omnicom CFO stated, "Our large European markets like Russia continued to perform largely well while the UK, France and Germany remained weak and in aggregate the Eurozone markets were down 3.7 percent." Register today and access the free research on Omnicom Group Inc. at
http://www.StockCall.com/OMC021313.pdf
Like Monster Worldwide, Omnicom Group also has tepid view of the near future performance. Its CEO cautioned: "While the macroeconomic environment appears to be stabilizing and even improving in some areas, issues in several markets remain unresolved." Omnicom stock offers good value with its 18 percent price growth and 2.14 dividend yield. The stock is expected to perform moderately well as the company carries out corrective measures and improves its profitability. The advertising company is performing better in the U.S. market, thus countering the weak performance in Europe and Asia.
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SOURCE StockCall.com
Published February 13, 2013 Reads 164
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