Zynga (ZNGA) Q3 Earnings: What's In The Cards This Time?
Zacks Investment Research | Oct 31, 2016 09:29PM ET
Zynga Inc. (NASDAQ:ZNGA) is set to report third-quarter 2016 results on Nov 2. Last quarter, the company delivered in-line earnings. On an average, Zynga has delivered a positive earnings surprise of 35.00% over the last four quarters.
Let’s see how things are shaping up for the upcoming announcement.
Factors at Play
Zynga has been seeing strength in the mobile game market. In addition, its cost cutting initiatives is a positive. We expect the top line to be driven by its popular games like Words With Friends and Poker. Even CSR Racing 2, which was released at the end of the second quarter, is expected to be an important growth driver.
However, the company has been seeing a slowdown in its user growth for a while, which remains a major concern. Moreover, a slowing web business along with intensifying competition from the likes of Glu Mobile (NASDAQ:GLUU) , Electronic Arts (NASDAQ:EA) and Nintendo’s Pokémon Go remain concerns.
For the third quarter of 2016, the company expects revenues in a range of $170 million to $180 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 Zacks Investment Research
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