By: E&P Staff
Monster Worldwide anticipates total non-GAAP operating expenses for Q1 to fall in the range of $327 million to $333 million, due largely to the company’s branding efforts and compensation related costs.
“These investments are vital to building a solid brand and operations platform, and have positioned Monster for strong, sustainable, long-term growth to our customers and shareholders,” Sal Iannuzzi, chairman and CEO of Monster, said in a statement. “Today’s range speaks only to our operating expenses, and is in-line with our internal projections.”
In a note to investors, Wachovia Equity Research analyst John Janedis points out that the Street’s consensus was less than what Monster announced by roughly $14 million. Consensus for Q1 non-GAAP operating expenses by the Street was $313 million.
Goldman Sachs’ Peter Appert wrote in note that Monster’s forecasted expenses are 30% higher than the research firm’s estimates.
“Somewhat troubling to us is that while traffic has improved year-to-date through February, the increase does not seem proportional to an estimated 70% increase in marketing/promotional spending,” Appert wrote.
Monster will release Q1 results on April 30.
Shares of Monster are trading down $1.81 late this afternoon to $23.89.