Zynga Earnings: ZNGA Stock Soars on Higher Annual Guidance

Zynga (NASDAQ:ZNGA) unveiled its latest quarterly earnings results late today, bringing in an adjusted loss that failed to meet Wall Street’s expectations, yet a higher guidance for its current fiscal year helped to lift ZNGA stock more than 9% after hours.

Zynga EarningsThe social video games developer — based out of San Francisco — said that for its first quarter of its fiscal 2019, it amassed a loss of $128.8 million, or 14 cents per share. On an adjusted basis when considering stock-based compensation and other items, the business’ loss narrowed to 7 cents per share, below its adjusted profit of 3 cents per share from its first quarter of 2018.

Analysts called for Zynga to rake in adjusted earnings of 5 cents per share for the period, according to data compiled by FactSet. The company added that its sales for the period reached $265.4 million, a 27.5% gain from its $208.2 million in revenue from the year-ago period.

The Wall Street consensus estimate predicted the company would rake in $328 million in sales, per FactSet. Zynga added that its bookings, a metric depicting deals in place for future business, soared to $359 million, more than doubling from the $162 million it had in the year-ago quarter.

The organization now sees its annual revenue as surging to $1.2 billion, marking a $50 million increase to its previous forecast. The company also added $100 million to its bookings guidance, which is now at $1.45 billion.

ZNGA stock was sliding about 2.7% during regular trading hours as the company geared up to reports its latest quarterly figures. A strong outlook for the current year played a role in Zynga shares surging about 9.4% after the bell Wednesday.

Article printed from InvestorPlace Media, https://investorplace.com/2019/05/zynga-earnings-znga-stock-2/.

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