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Zynga (ZNGA) to Report Q4 Earnings: What's in the Cards?
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Zynga is set to report fourth-quarter 2021 results on Feb 9.
The company expects fourth-quarter revenues to be $675 million. The Zacks Consensus Estimate for revenues is pegged at $720.4 million, indicating an increase of 3.02% from the year-ago quarter’s reported figure.
The consensus mark for earnings has remained unchanged at 8 cents per share in the past 30 days, suggesting year-over-year growth of 100%.
The company has a trailing four-quarter negative earnings surprise of 23.61%, 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 the strong popularity of five franchises — CSR Racing, Words With Friends, Zynga Poker, Empires & Puzzles and Merge Dragons!
Contributions from Rollic’s hyper-casual games portfolio are likely to have expanded the company’s robust gaming portfolio and strengthened its international audience base.
In November, Zynga announced the launch of a new competitive feature, Leagues: World Champions, in its free-to-play mobile poker game Zynga Poker. Moreover, November release Farmville 3 is expected to have driven user growth.
For the to-be-reported quarter, the consensus mark for daily average users and monthly average users is pegged at 36.86 million and 176 million, respectively.
Zynga expects net bookings to be $715 million for fourth-quarter 2021. The Zacks Consensus Estimate for bookings is currently pegged at $720 million, indicating growth of 3% year over year.
The company’s revenues are expected to benefit from live services. Growth in advertising, particularly from Rollic’s hyper-casual portfolio, and contributions from Chartboost as well as FarmVille 3 and Golf Rival are expected to have driven the top line.
Moreover, intense competition in the video game space from the likes of Electronic Arts, Take-Two Interactive and Activision Blizzard is likely to have hurt fourth-quarter revenues.
Key Developments in Q4
On Dec 21, Zynga announced a strategic partnership with Forte, a leading developer of blockchain solutions for game publishers. The alliance will enable Zynga to use its brand, community and intellectual property to develop more fun and enduring blockchain games.
On Oct 7, Zynga announced that it had closed the acquisition of StarLark, developer of the fast-growing and second-largest mobile golf game in the world, Golf Rival, from Betta Games for a total purchase price of over $525 million in cash and stock.
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 #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies you may want to consider, as our model shows that these also have the right combination of elements to post an earnings beat in their upcoming releases:
FUN is up 32.4% in the past year against the Zacks Leisure and Recreation Services industry’s decline of 6.9% and the Consumer Discretionary sector’s fall of 22.2%.
Gildan Activewear (GIL - Free Report) has an Earnings ESP of 9.57% and a Zacks Rank #2. The company is set to announce fourth-quarter 2021 results on Feb 23.
GIL is up 51.4% in the past year against the Zacks Textile – Apparel industry’s decline of 4.9% and the Consumer Discretionary sector’s fall of 22.2%.
Fox (FOXA - Free Report) has an Earnings ESP of 175% and a Zacks Rank #2. The company is all set to announce second-quarter fiscal 2022 results on Feb 9.
FOXA is up 24.5% in the past year against the Zacks Broadcast Radio and Television industry’s decline of 20.9% and the Consumer Discretionary sector’s fall of 22.2% in the past year.
Image: Bigstock
Zynga (ZNGA) to Report Q4 Earnings: What's in the Cards?
Zynga is set to report fourth-quarter 2021 results on Feb 9.
The company expects fourth-quarter revenues to be $675 million. The Zacks Consensus Estimate for revenues is pegged at $720.4 million, indicating an increase of 3.02% from the year-ago quarter’s reported figure.
The consensus mark for earnings has remained unchanged at 8 cents per share in the past 30 days, suggesting year-over-year growth of 100%.
The company has a trailing four-quarter negative earnings surprise of 23.61%, 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 Q4 Results
Zynga is expected to have benefited from strength in mobile live services fueled by the strong popularity of five franchises — CSR Racing, Words With Friends, Zynga Poker, Empires & Puzzles and Merge Dragons!
Contributions from Rollic’s hyper-casual games portfolio are likely to have expanded the company’s robust gaming portfolio and strengthened its international audience base.
In November, Zynga announced the launch of a new competitive feature, Leagues: World Champions, in its free-to-play mobile poker game Zynga Poker. Moreover, November release Farmville 3 is expected to have driven user growth.
For the to-be-reported quarter, the consensus mark for daily average users and monthly average users is pegged at 36.86 million and 176 million, respectively.
Zynga expects net bookings to be $715 million for fourth-quarter 2021. The Zacks Consensus Estimate for bookings is currently pegged at $720 million, indicating growth of 3% year over year.
The company’s revenues are expected to benefit from live services. Growth in advertising, particularly from Rollic’s hyper-casual portfolio, and contributions from Chartboost as well as FarmVille 3 and Golf Rival are expected to have driven the top line.
Moreover, intense competition in the video game space from the likes of Electronic Arts, Take-Two Interactive and Activision Blizzard is likely to have hurt fourth-quarter revenues.
Key Developments in Q4
On Dec 21, Zynga announced a strategic partnership with Forte, a leading developer of blockchain solutions for game publishers. The alliance will enable Zynga to use its brand, community and intellectual property to develop more fun and enduring blockchain games.
On Oct 7, Zynga announced that it had closed the acquisition of StarLark, developer of the fast-growing and second-largest mobile golf game in the world, Golf Rival, from Betta Games for a total purchase price of over $525 million in cash and stock.
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 #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some companies you may want to consider, as our model shows that these also have the right combination of elements to post an earnings beat in their upcoming releases:
Cedar Fun (FUN - Free Report) has an Earnings ESP of 6.02% and a Zacks Rank #1. The company is all set to announce its fourth-quarter 2021 results on Feb 16. You can see the complete list of today’s Zacks #1 Rank stocks here.
FUN is up 32.4% in the past year against the Zacks Leisure and Recreation Services industry’s decline of 6.9% and the Consumer Discretionary sector’s fall of 22.2%.
Gildan Activewear (GIL - Free Report) has an Earnings ESP of 9.57% and a Zacks Rank #2. The company is set to announce fourth-quarter 2021 results on Feb 23.
GIL is up 51.4% in the past year against the Zacks Textile – Apparel industry’s decline of 4.9% and the Consumer Discretionary sector’s fall of 22.2%.
Fox (FOXA - Free Report) has an Earnings ESP of 175% and a Zacks Rank #2. The company is all set to announce second-quarter fiscal 2022 results on Feb 9.
FOXA is up 24.5% in the past year against the Zacks Broadcast Radio and Television industry’s decline of 20.9% and the Consumer Discretionary sector’s fall of 22.2% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.