Zynga Reports Smaller Q2 Loss; Stock Plunges (ZNGA)

ZyngaZNGA
released its fiscal second-quarter earnings results after the closing bell on Thursday. Despite reporting both earnings per share and revenue that were ahead of Wall Street estimates, the stock plunged in late trade due to poor guidance for the third-quarter. At last check, the struggling online game developer's stock was down 14 percent to $3.01.
Management Commentary
"The next few years will be a time of phenomenal growth in our space and Zynga has incredible assets to take advantage of the market opportunity," said Don Mattrick, CEO, Zynga. "To do that, we need to get back to basics and take a longer term view on our products and business, develop more efficient processes and tighten up execution all across the company." Mattrick added, "We have a lot of hard work in front of us and as we reset, we expect to see more volatility in our business than we would like over the next two to four quarters. I'm privileged to lead Zynga and I look forward to spending more time with our players, employees and shareholders."
Related:Facebook soars and SAC Capital is indicted; Check out Thursday's Market Wrap-Up.Q2 Financial Results
Zynga reported a net loss of $15.8 million or $0.02 per share, compared to a loss of $22.8 million or $0.03 per share, in last year's corresponding period. On an adjusted basis, net loss was $6.1 million or $0.01 per share, versus net income of $4.5 million or $0.01 per share, in last year's second quarter. This topped Wall Street estimates calling for a loss of $0.04 per share. Revenue was $230.74 million from $332.49 million a year ago. This came in significantly ahead of Street consensus revenue estimates of $185.42 million.
Fiscal Q3 Guidance
Looking ahead to the fiscal third-quarter, Zynga guided for a loss of $0.05 to $0.02 per share, an adjusted loss of $0.09 to $0.05 per share and revenue of $175 million to $200 million. Currently, Wall Street analysts have consensus EPS estimates calling for a loss of $0.02 per share on revenue of $192.76 million for the third-quarter.

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