The first quarter earnings reporting period has just barely passed its peak, and today we’re expecting reports from Zynga, Activision Blizzard, Shake Shack and Zillow Group.
Zynga shares fall ahead of earnings
Zynga is expected to report adjusted earnings of 1 cent per share on $191.5 million in revenue. The game maker guided for about $190 million in bookings and approximately $19 million in adjusted EBITDA. Consensus stands at $193 million for bookings and $21 million for adjusted EBITDA.
Shares of Zynga declined by as much as 1.38% to $2.86 during regular trading hours today, although the stock is up by more than 11% year to date.
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Activision Blizzard to post first full quarter with King Digital
Activision Blizzard is expected to post adjusted earnings of 21 cents per share on $1.09 billion in sales. In the same quarter a year ago, the game maker reported 23 cents per share in earnings and $908 million in revenue. The game maker had guided for about $1.05 billion in revenue and earnings of around 18 cents per share.
The maker of World of Warcraft and countless other hit games is expected to benefit from its acquisition of King Digital, maker of Candy Crush Saga. The March quarter was the first full quarter with the inclusion of King. Wedbush analysts estimate that King alone will contributed about $218 million to Activision’s revenue during the first quarter. Other games that should drive results for Activision Blizzard include Overwatch, Call of Duty, Hearthstone and Heroes of the Storm.
Shares of Activision Blizzard have skyrocketed by nearly 50% year to date, rising from the $36 range at the beginning of the year to pass the $50 mark.
Zillow Group shares on the rise before earnings
Zillow Group is expected to report adjusted earnings of 6 cents per share on $239.9 million in revenue for the first quarter. The company guided for between $232 million and $237 million in revenue and net losses of $14.1 million to $19.1 million. Zillow projects $170 million to $172 million in Premier Agent revenue.
Zillow Group shares rose by as much as 2.23% to $39.84 ahead of tonight’s earnings release. It’s been a pretty rough year for the company’s stock, although even so, the shares are up by more than 9% year to date. Today’s gains suggest that investors are expecting excellent results tonight despite the rockiness Zillow Group stock has had since about the middle of February.
Shake Shack shares fall before the print
Shake Shack is expected to post earnings of 8 cents per share on $74.7 million in sales. For fiscal 2017, Shake Shack guided for total sales of $349 million to $353 million when releasing its fourth quarter results. That was an increase from the outlook management had provided before then, which was $348 million to $352 million. The company has also guided for same Shack sales growth of 2% to 3% for the full year.
Shares of Shake Shack fell by as much as 2.26% to $33.26 during regular trading hours. It seems the sizzle the company was met with at its initial public offering two years ago has worn off, although it has managed to surprise investors with a beat and raise in previous quarters. What investors are really going to be looking at is same store sales, which has tripped the company up in the past.