Video game publisher Zynga (ZNGA) late Wednesday beat Wall Street’s targets for the fourth quarter but offered mixed guidance. The earnings news pushed Zynga stock higher in extended trading.
The San Francisco-based company earned an adjusted $173 million on bookings of $699 million in the December quarter. Analysts expected adjusted earnings of $141 million on sales of $678 million. On a year-over-year basis, Zynga’s adjusted earnings rose 66% while bookings climbed 61%.
For the first quarter, Zynga guided to adjusted earnings of $145 million on bookings of $680 million. Analysts were looking for adjusted earnings of $152 million on bookings of $657 million.
For 2021, Zynga expects to earn an adjusted $650 million on bookings of $2.8 billion. Wall Street had predicted adjusted earnings of $653 million on bookings of $2.75 billion.
Zynga ‘Off To Tremendous Start’ In 2021
Under generally accepted accounting principles, or GAAP, Zynga lost 5 cents a share, vs. a year-earlier loss of a penny a share.
Zynga’s game franchises include “CSR Racing,” “Empires & Puzzles,” “Merge Dragons,” “Toon Blast,” “Toy Blast,” “Words With Friends” and “Zynga Poker.”
“Our live services portfolio is off to a tremendous start in 2021 led by our Forever Franchises, momentum in ‘Harry Potter: Puzzles & Spells’ and two new top-downloaded hyper-casual games from (Zynga division) Rollic,” Chief Executive Frank Gibeau said in a news release. “Zynga’s multiyear strategy of growing our live services, launching new games and investing in exciting growth opportunities has us well positioned for growth in 2021 and beyond.”
Zynga Stock Climbs In Late Trading
In after-hours trading on the stock market today, Zynga stock rose 4.1%, near 11.60. During the regular session Wednesday, Zynga stock dipped 1.5% to 11.16. Earlier in the session, Zynga stock hit a nine-year high of 11.58.
On Dec. 18, Zynga stock broke out of a double-bottom base at a buy point of 10.01, according to IBD MarketSmith charts. It is currently extended beyond the 5% chase zone of its breakout, based on IBD trading guidelines.
Zynga has been the subject recently of takeover speculation, with China’s Tencent (TCEHY) seen a possible buyer.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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