Photograph by David Paul Morris/Bloomberg
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Mobile-videogame publisher
Zynga
is scheduled to report second-quarter financial results on Wednesday after the market’s close.
Zynga stock (ticker: ZNGA) is up 63% in 2019 through Monday’s close at $6.41, well ahead of the
S&P 500.
The shares are trading at about 25 times expected earnings over the next 12 months, below the 5-year average of about 53 times.
Over the past 12 months, the stock is up about 59%. FactSet’s average price target is around $7, 10% above Monday’s close.
Here’s a snapshot of Wall Street’s expectations and some recent history.
• Wall Street is looking for quarterly earnings of 5 cents per share, according to FactSet, on bookings of $365 million. (“Bookings” is a non-GAAP number, widely used in the industry, that incorporates the effect of deferred revenue from such sources as the sale of virtual items, which is recognized over time.)
• In May, Zynga said to expect second-quarter bookings of $360 million, revenue of $280 million, and a net loss of $70 million.
• In last year’s second quarter, the company reported earnings of 2 cents a share on bookings of $234 million.
• Zynga reported first-quarter financial results in May, turning in earnings of 17 cents a share on bookings of $359 million. The shares have generally risen since.
• In June, it agreed to sell its San Francisco headquarters, a move generally expected to fund acquisitions. In mid-July, Barron’s covered an analyst’s bullish take suggesting that deals, as well as growth from its current games, should boost earnings and the stock.
A conference call with management is scheduled for 5 p.m. ET Wednesday.
Email David Marino-Nachison at david.marino-nachison@barrons.com. Follow him at @marinonachison and follow Barron’s Next at @barronsnext.
