Categories AlphaGraphs, Analysis, Technology

Zynga to announce Q4 earnings results tomorrow

Game-maker Zynga (ZNGA) is scheduled to announce fourth-quarter earnings results on February 6, Wednesday, after market close. Analysts expect the company to earn 4 cents per share on revenue of $260.35 million.

During the same period last year, the company reported earnings of 1 cent per share on revenue of $233.3 million.

In the past 12 months, the stock has been highly volatile, see-sawing between $3.50 and $4.50. ZNGA is currently 28.5% higher than its price last year.

Zynga mobile performance trend

In the last reported quarter, shares fell after the company’s earnings of 3 cents per share missed street consensus by a cent. However, the case may be different this time.

Related: Zynga rises 5% after reporting Q4 2018 earnings

Ever since the Farmville-maker turned its focus to mobile gaming, it has been performing relatively well. In the fourth quarter, the company may be up for better-than-expected results, thanks to meaningful growth in user engagement and bookings.

Margins have also expanded consistently, primarily driven by strong advertising revenues. Zynga’s biggest-till-date acquisition of Finland-based company Small Giant Games in December should add to the positive momentum surrounding the stock.

But many market observers feel the stock is currently overpriced and in urgent need for a correction, irrespective of what the results are going to be. If this market sentiment catches up, the stock might see another decline post earnings on Wednesday.

The stock has a 12-month average price target of $4.88, suggesting a 7.8% upside from the last close.

On Monday, shares of rival Glu Mobile (GLUU) slumped more than 10% after the company reported weaker-than-expected quarterly results.

 

Browse through our earnings calendar and get all scheduled earnings announcements, analyst/investor conference, and much more!

Most Popular

Cost reduction has become a priority for FedEx (FDX) after a challenging quarter

Shares of FedEx Corporation (NYSE: FDX) were up 1% on Tuesday. The stock has dropped 44% year-to-date and 34% over the past 12 months. The company delivered mixed results for

Prime Medicine is the next big biotech to pursue IPO. Here’s all you need to know

After a soft start to the year, the IPO market has witnessed muted activity so far though a few big companies entered the stock market. On the heels of AIG

Stock Watch: Is Darden Restaurants a good buy after earnings?

After a prolonged slowdown, the restaurant industry is returning to normal patterns but macroeconomic uncertainties and high inflation are currently playing spoilsport for it. While the pandemic-related slump forced many

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top