Monster Worldwide, Inc. (NYSE:MWW) announced on Thursday that its second-quarter profit was down 56 percent, which sent the value of its small cap stock down.
According to Dow Jones Newswires, the job-search company said the lower profits were due to a sluggish hiring economy in both the U.S. and overseas. The ongoing economic problems in Europe – where Monster makes nearly 25 percent of its revenue – have created serious challenges, which will likely affect the company's performance in the coming months as well.
Monster CEO Sal Iannuzzi told the media outlet that the current turmoil in Europe could wreak havoc on the company's performance, if moves are made to address the problem.
"The bad news is that it's increased," Iannuzzi said. "The good news is that it's now at a level that I think action will be taken."
According to Reuters, Monster said it expects its third-quarter revenue to decline by as much as 12 percent, while bookings, which provide a glimpse into future revenue, are projected to be down 10 percent.
As of 1:24 p.m. on August 2, Monster shares were down 15.7 percent to $5.99 each.