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.
Will Live Services Growth Aid Zynga (ZYNGA) Q1 Earnings?
Read MoreHide Full Article
Zynga is set to report first-quarter 2019 results on May 1.
Notably, the company’s earnings missed the Zacks Consensus Estimate in three of the trailing four quarters, the average negative surprise being 27.08%.
Zynga’s total daily active users (DAUs) were 22 million in fourth-quarter 2018, flat year over year. Additionally, the company’s monthly active users (MAUs) were 85 million, down 1 million year over year.
Zynga’s monthly unique users (MUUs) were 49 million in fourth-quarter 2018, same as the year-ago period. Moreover, the company’s monthly unique payers (MUPs) were 1.1 million in fourth-quarter 2018 compared with1.2 million in the year-ago period.
For the to-be reported quarter, the consensus mark for DAUs and MAUs is pegged at 25.81 million and 97 million, an increase of 14.7% and 9% year over year respectively. Additionally, the consensus mark for MUUs is anticipated to be 51 million, indicating an increase of 2% year over year. However, MUPs are expected to decline 2.5% year over year to 1.17 million in first-quarter 2019.
Moreover, the consensus mark for earnings has remained steady at 5 cents per share over the past seven days. The figure indicates solid growth of 150% year over year.
Let’s see how things are shaping up for the upcoming announcement.
Factors Likely to Influence Q1 Results
Zynga’s revenues in first-quarter 2019 is expected to benefit from growth in mobile live services. The company’s live services is supported by five franchises - CSR Racing, Words With Friends, Zynga Poker, Empires & Puzzles and Merge Dragons!.
Additionally, Zynga’s acquisition of Small Giant Games, creator of Empires & Puzzles franchise in the beginning of first-quarter 2019 is expected to diversify its game offerings.
Moreover, bookings growth in the to-be-reported quarter is likely to benefit from Gram Games, Small Giant Games and Merge Dragons! along with initial bookings contributions from Wonka’s World of Candy.
Zynga expects bookings of $325 million, up 48% year over year in first-quarter 2019. The Zacks Consensus Estimate is pegged at $320 million.
We believe the above factors may drive Zynga’s top line. Notably, management expects revenues to grow 15% year over year to $240 million in first-quarter 2019.
However, higher amortization and deferred revenue built up from the acquisitions is expected to hurt gross margins in the to-be-reported quarter. Moreover, increased sales and marketing expenses may hurt profitability.
What Our Model Says
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Sell-rated stocks (Zacks Rank #4 or 5) are best avoided.
Zynga has a Zacks Rank #3 and an Earnings ESP of 0.00%. 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, which, per our model, have the right combination of elements to post earnings beat this quarter:
SeaWorld Entertainment, Inc. has an Earnings ESP of +16% and a Zacks Rank #1.
Rent-A-Center, Inc. has an Earnings ESP of +22% and a Zacks Rank #1.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
Image: Bigstock
Will Live Services Growth Aid Zynga (ZYNGA) Q1 Earnings?
Zynga is set to report first-quarter 2019 results on May 1.
Notably, the company’s earnings missed the Zacks Consensus Estimate in three of the trailing four quarters, the average negative surprise being 27.08%.
Zynga’s total daily active users (DAUs) were 22 million in fourth-quarter 2018, flat year over year. Additionally, the company’s monthly active users (MAUs) were 85 million, down 1 million year over year.
Zynga’s monthly unique users (MUUs) were 49 million in fourth-quarter 2018, same as the year-ago period. Moreover, the company’s monthly unique payers (MUPs) were 1.1 million in fourth-quarter 2018 compared with1.2 million in the year-ago period.
Zynga Inc. Price and EPS Surprise
Zynga Inc. Price and EPS Surprise | Zynga Inc. Quote
For the to-be reported quarter, the consensus mark for DAUs and MAUs is pegged at 25.81 million and 97 million, an increase of 14.7% and 9% year over year respectively. Additionally, the consensus mark for MUUs is anticipated to be 51 million, indicating an increase of 2% year over year. However, MUPs are expected to decline 2.5% year over year to 1.17 million in first-quarter 2019.
Moreover, the consensus mark for earnings has remained steady at 5 cents per share over the past seven days. The figure indicates solid growth of 150% year over year.
Let’s see how things are shaping up for the upcoming announcement.
Factors Likely to Influence Q1 Results
Zynga’s revenues in first-quarter 2019 is expected to benefit from growth in mobile live services. The company’s live services is supported by five franchises - CSR Racing, Words With Friends, Zynga Poker, Empires & Puzzles and Merge Dragons!.
Additionally, Zynga’s acquisition of Small Giant Games, creator of Empires & Puzzles franchise in the beginning of first-quarter 2019 is expected to diversify its game offerings.
Moreover, bookings growth in the to-be-reported quarter is likely to benefit from Gram Games, Small Giant Games and Merge Dragons! along with initial bookings contributions from Wonka’s World of Candy.
Zynga expects bookings of $325 million, up 48% year over year in first-quarter 2019. The Zacks Consensus Estimate is pegged at $320 million.
We believe the above factors may drive Zynga’s top line. Notably, management expects revenues to grow 15% year over year to $240 million in first-quarter 2019.
However, higher amortization and deferred revenue built up from the acquisitions is expected to hurt gross margins in the to-be-reported quarter. Moreover, increased sales and marketing expenses may hurt profitability.
What Our Model Says
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Sell-rated stocks (Zacks Rank #4 or 5) are best avoided.
Zynga has a Zacks Rank #3 and an Earnings ESP of 0.00%. 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, which, per our model, have the right combination of elements to post earnings beat this quarter:
Electronic Arts Inc. (EA - Free Report) has an Earnings ESP of +16.3% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
SeaWorld Entertainment, Inc. has an Earnings ESP of +16% and a Zacks Rank #1.
Rent-A-Center, Inc. has an Earnings ESP of +22% and a Zacks Rank #1.
Zacks' Top 10 Stocks for 2019
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?
Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.
See Latest Stocks Today >>