Zynga Inc (NASDAQ:ZNGA) is expected to post earnings per share in line or above the conservative estimates, according to Wedbush analysts Michael Pachter, Nick McKay and Nick Citrin. Analysts also believe that the social game developer will continue with its cost-cutting measures in 2014.

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The gaming company will post its third quarter 2013 report after market close on Thursday, October 24 and will hold a conference call at 2 pm PST.

Zynga to post in line Q3 results

Analysts are expecting Zynga Inc (NASDAQ:ZNGA) to post higher or in line earnings per share for the third quarter ending in September. Analysts believe that the earnings per share guidance give the management flexibility to counterbalance any sudden top line weakness with further cost control and reducing headcounts.

Analysts expect revenue for the third quarter to be $200 million with bookings of $150 million and earnings per share of $0.04. Guidance for revenue is given to be in the range of $175-200 million, bookings of $125-150 million and earnings per share of $0.09-$0.05.

For the fourth quarter, revenue is expected to be $160 million, bookings of $124 million, with an EPS of $0.04.

More layoffs expected

Analysts believe that new CEO Don Mattrick will announce more layoffs and a strategic plan during the call on Thursday. In the previous quarter, Mattrick stated that he will probably spend 90 days conducting a top-to-bottom business unit review and headcount review along with other factors.

Total number of employees by the end of the second quarter reached 2,360, which is a decline of 628 quarter-on-quarter. Around 520 reductions in headcount out of total 628 were announced in early June. In August, Don Mattrick further announced the shuffling of management with the top three employees leaving the company.

Analysts expect the CEO to announce more initiatives to enhance the company’s efficiency. Guidance is expected to remain conservative allowing Mattrick to make efforts to restructure the company to support a lower revenue profile and greater focus on mobile development.

Analysts are maintaining an Outperform rating on Zynga Inc (NASDAQ:ZNGA) and have assigned 12 months price target of $4.25. Further, they note that more job cuts as well as the efforts by the new CEO will bring profitability back to the company “possibly as early as 2014.”