Zynga (ZNGA – Snapshot Report) is the world’s largest social game developer. The company has made many famous titles such as Mafia Wars, FarmVille, Treasure Isle, and more. These games are available across popular platforms such as Facebook, Yahoo, smartphones, and more.
The average trading volume for ZNGA is about 10.5 million shares. However, investors were seen dumping their stock in the company today, with a trading volume at about 50 million today.
It is also worth noting that ZNGA has been downgraded in the last week from a Zacks Rank #1 to a Zacks Rank #2. Something else worth noting is the fact that our consensus EPS estimate has been constant over the past 90 days, so analysts haven’t been revising their estimates ahead of today’s report.
However, given some of the earnings stats, we could definitely see a change in the Zacks Rank ahead. This is particularly true based on ZNGA’s revenue numbers, which were largely a disappointment to Wall Street, along with a change in the company’s guidance for the coming quarter. We have highlighted some of the key details from the report below:
Earnings: ZNGA posted an EPS which was in line with the Street estimate of $0.00. And on a BNRI basis, ZNGA posted a loss of 5 cents per share, missing the Zacks Consensus Estimate of -$0.04/share.
Revenue: Zynga missed our revenue consensus estimate of $197 million, and actually posted revenues of $192.5 million.
Key Stats: Zynga announced 2 new games currently in development following the earnings announcement. The names of the games are Dawn of Titans and Empires & Allies.
ZNGA also announced a cut to its guidance. The company now expects revenue in the $155-$165 million range, down from Zacks Consensus Estimate which called for revenue in the $200 million range.
Stock Price: ZNGA saw a bad trading session today, closing down 5.34% for the day. However, it wasn’t as bad as the aftermarket trading, as the stock crumbled another 10%.
Stay tuned to Zacks for the complete earnings report on ZNGA later!
