We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
What's in the Cards for Zynga (ZNGA) this Earnings Season?
Read MoreHide Full Article
Zynga Inc. is set to report second-quarter 2016 results on Aug 4. Last quarter, the company delivered a positive earnings surprise of 40%. On an average, Zynga has delivered a positive earnings surprise of 43.33% over the last four quarters.
Let’s see how things are shaping up for the upcoming announcement.
Factors at Play
Zynga has been benefiting from the strength in the mobile game market. In addition, its cost cutting initiatives is a big positive. We expect the top line to be driven by its popular games like Words With Friends and Poker. Even CSR Racing 2, which released towards the second quarter end, had a big start. The company remains on track to release 10 games in this year
However, a slowing web business along with intensifying competition from the likes of Glu Mobile and Electronic Arts remain concerns.
For the second quarter of 2016, the company expects revenues in a range of $160 million–$170 million.
Earnings Whispers
Our proven model does not conclusively show that Zynga is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here as you will see below.
Zacks ESP: Zynga has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at a loss of 3 cents.
Zacks Rank: Zynga has a Zacks Rank #3, which when combined with a 0.00% ESP, makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.
Here are a couple of stocks, which you may consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter:
CDK Global, Inc with an Earnings ESP of +4.26% and a Zacks Rank #1
GoDaddy Inc. (GDDY - Free Report) with an Earnings ESP of +50.00% and a Zacks Rank #3.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
What's in the Cards for Zynga (ZNGA) this Earnings Season?
Zynga Inc. is set to report second-quarter 2016 results on Aug 4. Last quarter, the company delivered a positive earnings surprise of 40%. On an average, Zynga has delivered a positive earnings surprise of 43.33% over the last four quarters.
Let’s see how things are shaping up for the upcoming announcement.
Factors at Play
Zynga has been benefiting from the strength in the mobile game market. In addition, its cost cutting initiatives is a big positive. We expect the top line to be driven by its popular games like Words With Friends and Poker. Even CSR Racing 2, which released towards the second quarter end, had a big start. The company remains on track to release 10 games in this year
However, a slowing web business along with intensifying competition from the likes of Glu Mobile and Electronic Arts remain concerns.
For the second quarter of 2016, the company expects revenues in a range of $160 million–$170 million.
Earnings Whispers
Our proven model does not conclusively show that Zynga is likely to beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. This is not the case here as you will see below.
Zacks ESP: Zynga has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at a loss of 3 cents.
Zacks Rank: Zynga has a Zacks Rank #3, which when combined with a 0.00% ESP, makes surprise prediction difficult.
We caution against stocks with a Zacks Rank #4 or 5 (Sell-rated stocks) going into the earnings announcement, especially when the company is seeing negative estimate revisions momentum.
ZYNGA INC Price and EPS Surprise
ZYNGA INC Price and EPS Surprise | ZYNGA INC Quote
Stocks to Consider
Here are a couple of stocks, which you may consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter:
CDK Global, Inc with an Earnings ESP of +4.26% and a Zacks Rank #1
GoDaddy Inc. (GDDY - Free Report) with an Earnings ESP of +50.00% and a Zacks Rank #3.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>