Is Zynga Inc (ZNGA) in Trouble this Quarter?
Zynga Inc (ZNGA) Information Technology – Software| Reports May 4, After Market Closes
- The Estimize consensus is calling for a 1 cent loss on the bottom line and revenue expectations of $164.58 million
- Zynga has failed to release a hit game following the booming success of FarmVille
- Two of the company’s most important metrics, daily active user (DAUs) and monthly active users (MAUs) have plunged as the company searches for a new growth catalyst
- What are you expecting for ZNGA? Get your estimate in here!
ZNGA – Earnings preview
Mobile game manufacturer, Zynga is scheduled to report first quarter earnings Wednesday, after the market closes. Zynga has benefitted from strength in the mobile gaming market, beating revenue in each quarter of fiscal 2015. Unfortunately, the stock hasn’t tracked earnings and is down 12.5% since the start of the year. Lately, earnings have also suffered with Zynga failing to turn a profit in the last 2 fiscal years. Expectations are relatively low ahead of earnings as estimates have been cut 16% and sales 7%. As a result, Zynga is looking for a 1 cent loss on $164.58 million in revenue according to the Estimize consensus. Compared to a year earlier this represents a 10% increase on the bottom line, while sales are expected to decline 9%. Given Zynga’s volatile earnings it’s not surprising that the stock typically drops 2% through earnings. Due to the nature of the gaming market, Zynga’s success hinges on whether or not they can release a new viral game.
Do you think ZNGA can beat estimates? There is still time to get your estimate in here!