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The company expects third-quarter revenues to be $665 million. The Zacks Consensus Estimate for revenues is pegged at $664.6 million, indicating an increase of 5.8% from the year-ago quarter’s reported figure.
The consensus mark for earnings has remained unchanged at 6 cents per share in the past 30 days, suggesting year-over-year growth of 300%.
The company has a trailing four-quarter negative earnings surprise of 61.1%, on average.
Let’s see how things have shaped up for the upcoming announcement.
Factors Likely to Influence Q3 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!.
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.
Peak’s Toon Blast and Toy Blast are expected to have driven player engagement, thereby contributing to top-line growth. Also, steady demand for Harry Potter: Puzzles & Spells is expected to have driven user base.
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. During the to-be-reported quarter, Rollic announced that it has surpassed 1 billion downloads across its diverse portfolio of hyper-casual games.
For the to-be-reported quarter, the consensus mark for daily average users and monthly average users is pegged at 40.53 million and 180 million, respectively.
Zynga expects net bookings to be $660 million for the third quarter of 2021. The Zacks Consensus Estimate for bookings is currently pegged at $667 million, indicating growth of 6.2% year over year.
Advertising revenues are expected to remain under pressure due to Apple’s privacy changes in its iOS. Declines in older mobile and web game users are expected to have been a dampener in the quarter under review.
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 Q3
On Aug 6, Zynga entered into a definitive agreement to acquire StarLark, developer of the fast-growing and second-largest mobile golf game in the world, Golf Rival, from Betta Games for $525 million in cash and stock. The company closed the acquisition on Oct 3.
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 #5 (Strong Sell). 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 Q3 Earnings: What's in the Cards?
Zynga is set to report third-quarter 2021 results on Nov 8.
The company expects third-quarter revenues to be $665 million. The Zacks Consensus Estimate for revenues is pegged at $664.6 million, indicating an increase of 5.8% from the year-ago quarter’s reported figure.
The consensus mark for earnings has remained unchanged at 6 cents per share in the past 30 days, suggesting year-over-year growth of 300%.
The company has a trailing four-quarter negative earnings surprise of 61.1%, on average.
Zynga Inc. Price and EPS Surprise
Zynga Inc. price-eps-surprise | Zynga Inc. Quote
Let’s see how things have shaped up for the upcoming announcement.
Factors Likely to Influence Q3 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!.
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.
Peak’s Toon Blast and Toy Blast are expected to have driven player engagement, thereby contributing to top-line growth. Also, steady demand for Harry Potter: Puzzles & Spells is expected to have driven user base.
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. During the to-be-reported quarter, Rollic announced that it has surpassed 1 billion downloads across its diverse portfolio of hyper-casual games.
For the to-be-reported quarter, the consensus mark for daily average users and monthly average users is pegged at 40.53 million and 180 million, respectively.
Zynga expects net bookings to be $660 million for the third quarter of 2021. The Zacks Consensus Estimate for bookings is currently pegged at $667 million, indicating growth of 6.2% year over year.
Advertising revenues are expected to remain under pressure due to Apple’s privacy changes in its iOS. Declines in older mobile and web game users are expected to have been a dampener in the quarter under review.
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 Q3
On Aug 6, Zynga entered into a definitive agreement to acquire StarLark, developer of the fast-growing and second-largest mobile golf game in the world, Golf Rival, from Betta Games for $525 million in cash and stock. The company closed the acquisition on Oct 3.
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 #5 (Strong Sell). 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:
Applied Materials (AMAT - Free Report) has an Earnings ESP of +0.52% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Synaptics (SYNA - Free Report) has an Earnings ESP of +0.38% and a Zacks Rank #2.
Blink Charging (BLNK - Free Report) has an Earnings ESP of +8.33% and a Zacks Rank #3.