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Zynga (ZNGA) recorded a quarterly loss of $ 0.12 per share, compared to a consensus estimate of $ 0.05 per Zack. This compares to a profit of $ 0.02 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents a profit surprise of -340%. A quarter of a month ago, it was expected that the maker of "FarmVille" and other online games would post a profit of $ 0.04 per share while he was raking in a profit of 0.02 dollar, a surprise of -50%.
During the last four quarters, the Company has not been able to exceed EPS consensus estimates.
Zynga, which belongs to the Zacks gaming sector, achieved a business turnover of $ 359.49 million for the quarter ended March 31, 2019, exceeding the consensus of Zacks by 9.83%. . This compares with revenues of $ 219.47 million a year ago. The company has exceeded three times the revenue estimated by consensus over the last four quarters.
The sustainability of the immediate movement of stock prices, based on recently published figures and future earnings forecasts, will depend primarily on management's feedback on the earnings call.
Zynga shares have grown about 44% since the beginning of the year, compared to 17.5% for the S & P 500.
<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "What's next for Zynga?"data-reactid =" 28 ">What's next for Zynga?
While Zynga has outperformed the market since the beginning of the year, the question for investors is: what is the next step for the stock?
There is no easy answer to this key question, but the company's earnings outlook is a reliable measure to help investors. This includes not only the forecast of current consensus results for the coming quarters, but also the way in which these forecasts have changed recently.
Empirical research shows a strong correlation between short-term stock movements and trends in revisions to earnings estimates. Investors can track these revisions themselves, or rely on a proven scoring tool such as Zacks Rank, which has impressive experience operating the revision of earnings power estimates.
Prior to the release of these results, the trend of the estimated revisions for Zynga was mixed. Although the magnitude and direction of the revisions may change as a result of the release of the company's earnings report, the current status results in a ranking of Zacks # 3 (pending) for the stock. As a result, equities should evolve in line with the market in the near future. You can see the complete list of # 1 Zacks stock at current rank (strong buy) here.
It will be interesting to see how the estimates for the coming quarters and the current fiscal year will change in the coming days. The consensus estimate of EPS is currently $ 0.05 on revenue of $ 326.92 million for the next quarter and $ 0.21 on revenue of $ 1.36 billion for the fiscal year. In progress.
Investors should be aware that the outlook for the sector can also have a significant impact on the performance of the security. With regard to the Zacks industry ranking, games are currently among 38% of Zack's 250 most active industries. Our research shows that the top 50% of industries ranked by Zacks perform better than the bottom 50% by a factor greater than 2 to 1.
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Zynga Inc. (ZNGA): Free Stock Analysis Report
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