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Zynga (ZNGA) to Report Q2 Earnings: What's in the Cards?
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Zynga is set to report second-quarter 2021 results on Aug 5.
The company expects second-quarter revenues to be $675 million. The Zacks Consensus Estimate for revenues is pegged at $713.5 million, indicating an increase of 37.7% from the year-ago quarter’s reported figure.
Moreover, the consensus mark for earnings has remained unchanged at 9 cents per share in the past 30 days, suggesting year-over-year growth of 1000%.
The company has a trailing four-quarter negative earnings surprise of 78.1%, on average.
Let’s see how things have shaped up for the upcoming announcement.
Zynga is expected to have benefited from strength in mobile live services fueled by strong popularity of five franchises — CSR Racing, Words With Friends, Zynga Poker, Empires & Puzzles and Merge Dragons!.
Moreover, strength in Zynga’s Social Slots portfolio stemming from 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.
The worldwide launch of Puzzle Combat, a new mobile match-3 action role-playing game (RPG) where players recruit heroes, build bases and compete in player-vs-player (PvP) battles in a zombie-themed setting is a major positive. Also, Peak’s Toon Blast and Toy Blast are expected to have driven player engagement, thereby contributing to top-line growth.
Contributions from Rollic’s hyper-casual games portfolio is expected to have strengthened the company’s international audience base in the to-be-reported quarter. Growing popularity of Harry Potter: Puzzles & Spells in South Korea is likely to have driven international player growth in the to-be-reported quarter.
For the to-be-reported quarter, the consensus mark for daily average users and monthly average users is pegged at 38.03 million and 154 million, respectively, indicating an increase of 72.9% and 120%, year over year.
The increasing player engagement in 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 $710 million for the second quarter of 2021. The Zacks Consensus Estimate for bookings is currently pegged at $716 million, indicating growth of 38.2% year over year.
However, declines in older mobile and web game users are expected to have been a dampener in the quarter under review.
Moreover, intense 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 second-quarter revenues.
Key Developments in Q2
On May 5, Zynga entered into a definitive agreement to acquire Chartboost, a leading mobile programmatic advertising and monetization platform.
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 0.00% 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:
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Zynga (ZNGA) to Report Q2 Earnings: What's in the Cards?
Zynga is set to report second-quarter 2021 results on Aug 5.
The company expects second-quarter revenues to be $675 million. The Zacks Consensus Estimate for revenues is pegged at $713.5 million, indicating an increase of 37.7% from the year-ago quarter’s reported figure.
Moreover, the consensus mark for earnings has remained unchanged at 9 cents per share in the past 30 days, suggesting year-over-year growth of 1000%.
The company has a trailing four-quarter negative earnings surprise of 78.1%, on average.
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 Q2 Results
Zynga is expected to have benefited from strength in mobile live services fueled by strong popularity of five franchises — CSR Racing, Words With Friends, Zynga Poker, Empires & Puzzles and Merge Dragons!.
Moreover, strength in Zynga’s Social Slots portfolio stemming from 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.
The worldwide launch of Puzzle Combat, a new mobile match-3 action role-playing game (RPG) where players recruit heroes, build bases and compete in player-vs-player (PvP) battles in a zombie-themed setting is a major positive. Also, Peak’s Toon Blast and Toy Blast are expected to have driven player engagement, thereby contributing to top-line growth.
Contributions from Rollic’s hyper-casual games portfolio is expected to have strengthened the company’s international audience base in the to-be-reported quarter. Growing popularity of Harry Potter: Puzzles & Spells in South Korea is likely to have driven international player growth in the to-be-reported quarter.
For the to-be-reported quarter, the consensus mark for daily average users and monthly average users is pegged at 38.03 million and 154 million, respectively, indicating an increase of 72.9% and 120%, year over year.
The increasing player engagement in 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 $710 million for the second quarter of 2021. The Zacks Consensus Estimate for bookings is currently pegged at $716 million, indicating growth of 38.2% year over year.
However, declines in older mobile and web game users are expected to have been a dampener in the quarter under review.
Moreover, intense 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 second-quarter revenues.
Key Developments in Q2
On May 5, Zynga entered into a definitive agreement to acquire Chartboost, a leading mobile programmatic advertising and monetization platform.
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 0.00% 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:
Avnet, Inc. (AVT - Free Report) has an Earnings ESP of +9.82% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Arrow Electronics, Inc. (ARW - Free Report) has an Earnings ESP of +0.77% and a Zacks Rank #2.
CACI International, Inc. (CACI - Free Report) has an Earnings ESP of +6.62% and a Zacks Rank #2.