Thursday, August 04, 2016 8:31:25 AM
...IN THE FIRST QUARTER, THE COMPANY TOPPED WALL STREET ESTIMATES,..
...A WELCOME SIGN OF THINGS TO COME...
...RISEN SOME 26%, OUTPERFORMING THE S&P 500...
ZYNGA SHARES HAVE INCREASED 10.45% YEAR-TO-DATE AND 19.35% OVER THE PAST TWELVE MONTHS, COMPARED TO A 5.5% YEAR-TO-DATE RISE IN THE S&P 500 (SPX) INDEX.
ZYNGA EARNINGS COMING UP: WHAT TO EXPECT? (ZNGA)
BY RICHARD SAINTVILUS |
AUGUST 3, 2016 — 9:41 PM EDT
SHARES OF ZYNGA, INC. (ZNGA) SOARED AS MUCH AS 4.5% WEDNESDAY, THANKS TO A PRICE TARGET INCREASE FROM ANALYST DOUG CREUTZ AT COWEN & CO., who RAISED HIS RATING ON ZYNGA SHARES TO "OUTPERFORM" from a "hold" recommendation, which had been in place for six months.
The social gaming company IS SET TO REPORT SECOND QUARTER FISCAL 2016 EARNINGS RESULTS AFTER THE CLOSING BELL THURSDAY. CREUTZ'S CONFIDENCE, INCLUDING HIS PRICE TARGET OF $3.50, WHICH IS 18% ABOVE CURRENT LEVELS, IS A WELCOME SIGN OF THINGS TO COME. But he's a little late to the party. His previous target of $2.50 was surpassed in April.(See also: Zynga Stock Soars 15% on Q1 Earnings Beat.)
Meanwhile, DURING HIS SIX-MONTH HOLD RECOMMENDATION, ZYNGA SHARES HAVE RISEN SOME 26%, OUTPERFORMING THE S&P 500 (SPX) index. On Thursday, investors are hoping that the company's recent string of successes continues.
For the three months that ended June, Wall Street expects the San Francisco-based maker of "FarmVille" and "Words With Friends" to earn 0 cents (breakeven) on revenue of $169.4 million, according to Thomson Reuters. For the full year, ending in December, Zynga is expected to earn 2 cents per share on $744 million in revenue. In the year-ago quarter, Zynga posted an adjusted loss of 1 cent per share, while revenue came in at $174 million.
SINCE THE ARRIVAL OF NEW CEO FRANK GIBEAU IN MARCH, THE FOCUS HAS BEEN ON TRANSITIONING THE COMPANY TO A MOBILE-CENTRIC GAME MAKER. MOBILE NOW REPRESENTS ABOUT 76% OF ZYNGA'S TOTAL BOOKINGS, SUGGESTING HIS MANEUVERS HAVE BEGUN TO WORK. (See also: King Digital vs. Zynga: Who Will Win the Mobile Gaming Market?)
IN THE FIRST QUARTER, THE COMPANY TOPPED WALL STREET ESTIMATES, which were boosted by the company slashing its operating expenses. The heightened focus on costs and expenses resulted in a first-quarter net loss that narrowed to $26.6 million, or 3 cents per share, compared to a loss of $46.5 million a year ago. FIRST QUARTER REVENUE OF $181.6 MILLION, WHICH GREW 8% YEAR-OVER-YEAR, ALSO TOPPED STREET FORECASTS OF $163.4 MILLION.
ZYNGA SHARES HAVE INCREASED 10.45% YEAR-TO-DATE AND 19.35% OVER THE PAST TWELVE MONTHS, COMPARED TO A 5.5% YEAR-TO-DATE RISE IN THE S&P 500 (SPX) INDEX.
Read more: Zynga Earnings Coming Up: What to Expect? (ZNGA) | Investopedia www.investopedia.com/news/zynga-earnings-coming-what-expect-znga/#ixzz4GMdA506y
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