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Zynga (ZNGA) to Report Q1 Earnings: What's in the Cards?
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Zynga is set to report first-quarter 2021 results on May 5.
The company expects first-quarter revenues to be $635 million. The Zacks Consensus Estimate for revenues is pegged at $685.8 million, indicating an increase of 61.4% from the year-ago quarter’s reported figure.
Moreover, the consensus mark for earnings has remained unchanged at 9 cents per share over the past 30 days, suggesting year-over-year growth of 800%.
Notably, the company’s earnings missed the Zacks Consensus Estimate in the trailing four quarters, the average negative surprise being 95.3%.
Let’s see how things have shaped up for the upcoming announcement.
Zynga is expected to have benefited from strength in mobile live services supported by strong popularity of five franchises — CSR Racing, Words With Friends, Zynga Poker, Empires & Puzzles, and Merge Dragons!.
Also, Peak’s Toon Blast and Toy Blast is expected to have driven player engagement, thereby contributing to top-line growth.
Moreover, the coronavirus-led social-distancing practices, are expected to have been a major growth driver in increasing the number of active users in the to-be-reported quarter.
Further, contributions from Rollic’s hyper-casual games portfolio in the first quarter is expected to have strengthened the company’s international audience base in the to-be-reported quarter.
Additionally, rollout of Harry Potter: Puzzles & Spells in South Korea is likely to have driven international player growth in the quarter under review.
Moreover, the increasing popularity of games like Merge Magic!, Farm Ville 3, Puzzle Combat, Empires & Puzzles and CSR Racing 2 (CSR2) is expected to have benefited Zynga’s net bookings and driven monetization of the company’s gaming portfolio.
Notably, Zynga expects net bookings to be $680 million for the first quarter of 2021. The Zacks Consensus Estimate for bookings is currently pegged at $687 million, indicating growth of 61.6% year over year.
Moreover, strength in Zynga’s Social Slots portfolio due to games such as Wizard of Oz Slots, Hit It Rich! Slots and Game of Thrones Social Slots Casino, along with contributions from the Casual Cards portfolio is expected to have positively impacted the top line.
For the to-be-reported quarter, the consensus mark for daily average users and monthly average users is pegged at 35.15 million and 120 million, respectively, indicating an increase of 67.4% and 76.5% year over year.
However, declines in older mobile and web game users is expected to have been a dampener in the quarter under review.
Moreover, intensifying competition in the video game space from the likes of Electronic Arts, Take-Two Interactive and Activision Blizzard is likely to have had a negative impact on first-quarter revenues.
Key Developments in Q1
On Mar 3, Zynga announced that it has acquired Echtra Games, a cross-platform game studio. The Echtra Games team is expected to strengthen Zynga’s cross-platform play future by adding talented developers with extensive cross-platform play experience as well as proprietary cross-platform development tools and technologies that have been built on top of the Unreal Engine.
What Our Model Says
According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Zynga has an Earnings ESP of -7.83% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:
CDW Corporation (CDW - Free Report) has an Earnings ESP of +0.51% and a Zacks Rank #2.
AMETEK (AME - Free Report) has an Earnings ESP of +0.49% and a Zacks Rank #3.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
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Zynga (ZNGA) to Report Q1 Earnings: What's in the Cards?
Zynga is set to report first-quarter 2021 results on May 5.
The company expects first-quarter revenues to be $635 million. The Zacks Consensus Estimate for revenues is pegged at $685.8 million, indicating an increase of 61.4% from the year-ago quarter’s reported figure.
Moreover, the consensus mark for earnings has remained unchanged at 9 cents per share over the past 30 days, suggesting year-over-year growth of 800%.
Notably, the company’s earnings missed the Zacks Consensus Estimate in the trailing four quarters, the average negative surprise being 95.3%.
Let’s see how things have shaped up for the upcoming announcement.
Zynga Inc. Price and EPS Surprise
Zynga Inc. price-eps-surprise | Zynga Inc. Quote
Factors Likely to Influence Q1 Results
Zynga is expected to have benefited from strength in mobile live services supported by strong popularity of five franchises — CSR Racing, Words With Friends, Zynga Poker, Empires & Puzzles, and Merge Dragons!.
Also, Peak’s Toon Blast and Toy Blast is expected to have driven player engagement, thereby contributing to top-line growth.
Moreover, the coronavirus-led social-distancing practices, are expected to have been a major growth driver in increasing the number of active users in the to-be-reported quarter.
Further, contributions from Rollic’s hyper-casual games portfolio in the first quarter is expected to have strengthened the company’s international audience base in the to-be-reported quarter.
Additionally, rollout of Harry Potter: Puzzles & Spells in South Korea is likely to have driven international player growth in the quarter under review.
Moreover, the increasing popularity of games like Merge Magic!, Farm Ville 3, Puzzle Combat, Empires & Puzzles and CSR Racing 2 (CSR2) is expected to have benefited Zynga’s net bookings and driven monetization of the company’s gaming portfolio.
Notably, Zynga expects net bookings to be $680 million for the first quarter of 2021. The Zacks Consensus Estimate for bookings is currently pegged at $687 million, indicating growth of 61.6% year over year.
Moreover, strength in Zynga’s Social Slots portfolio due to games such as Wizard of Oz Slots, Hit It Rich! Slots and Game of Thrones Social Slots Casino, along with contributions from the Casual Cards portfolio is expected to have positively impacted the top line.
For the to-be-reported quarter, the consensus mark for daily average users and monthly average users is pegged at 35.15 million and 120 million, respectively, indicating an increase of 67.4% and 76.5% year over year.
However, declines in older mobile and web game users is expected to have been a dampener in the quarter under review.
Moreover, intensifying competition in the video game space from the likes of Electronic Arts, Take-Two Interactive and Activision Blizzard is likely to have had a negative impact on first-quarter revenues.
Key Developments in Q1
On Mar 3, Zynga announced that it has acquired Echtra Games, a cross-platform game studio. The Echtra Games team is expected to strengthen Zynga’s cross-platform play future by adding talented developers with extensive cross-platform play experience as well as proprietary cross-platform development tools and technologies that have been built on top of the Unreal Engine.
What Our Model Says
According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Zynga has an Earnings ESP of -7.83% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:
Playtika Holding Corp. (PLTK - Free Report) has an Earnings ESP of +18.87% and is Zacks #2 Ranked. You can see the complete list of today’s Zacks #1 Rank stocks here.
CDW Corporation (CDW - Free Report) has an Earnings ESP of +0.51% and a Zacks Rank #2.
AMETEK (AME - Free Report) has an Earnings ESP of +0.49% and a Zacks Rank #3.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>