Market Overview

King Digital Earnings Preview: Can It Beat Estimates Again?


Shares of King Digital Entertainment PLC (NYSE: KING) were down 3 percent on Thursday, as the company readies to announce its first quarter financial results after the market closes.

According to Estimize, Wall Street research firms are modeling earnings of $0.54 per share on revenue of $592.45 million. The crowd is slightly more bullish, and projects earnings of $0.57 on revenue of $598.92 million.

These figures compare to the earnings of $0.61 on revenue of $606.7 million reported in the first quarter of 2014, and earnings of $0.57 on revenue of $559.2 million registered in the latest quarter.

It should be noted that King Digital has a history of comfortably surpassing estimates.

The second graph shows how consensus estimates have changed over time. The Street has been becoming more constructive since January. The crowd’s sentiment has experienced some ups and downs, before settling around $0.57.

Related Link: Stifel Sees Continued Q1 'Candy Crush' Decline At King Digital

One-Hit Wonder?

In an article published Thursday, Estimize’s Leigh Drogen asked if King Digital is a one-hit wonder.

Drogen said, “The takeaway is that King's Digital's earnings and revenue aren't growing. That's undeniably true. But King has made demonstrable progress in reducing its own addiction to Candy Crush. The next step for King is to focus on increasing the number of customers who actually pay to play King's freemium games. The challenge for King is that the freemium mobile games space is welcoming new competitors each day and that landscape is becoming increasingly crowded.”

Posted-In: Candy Crush EstimizePreviews Crowdsourcing Tech Trading Ideas General


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