Zynga Plunges on Weak Guidance

Online game-maker Zynga ZNGA released its fiscal first-quarter earnings results on Wednesday after the closing bell. The company topped Wall Street estimates, but a weak Q2 forecast has sent the stock skidding after-hours. At last check, ZNGA had lost around 9 percent and was trading at $3.07. The company reported net income of $4.1 million or breakeven per share, compared to a net loss of $85.4 million or $0.12 per share, in last year's corresponding period. On an adjusted basis, net income in the quarter was $9.1 million or $0.01 per share, versus $47 million or $0.06 per share, in last year's first-quarter. This easily beat analysts' consensus EPS estimates calling for a loss of $0.04. Revenue in the quarter was down to $263.59 million from $320.97 million a year ago. This also easily topped Wall Street consensus revenue estimates of $209.79 million. Looking ahead to the fiscal second-quarter, Zynga said that it expects an EPS loss of $0.03 to $0.05 per share on revenue of $225 million to $235 million. This is well below current consensus calling for a loss of $0.01 per share on revenue of $236.12 million.