Zynga Earnings Top Estimates After Punishing Day for Video Games
(Bloomberg) -- Zynga Inc. brought a bit of good news to the battered gaming industry on Wednesday, with its latest results beating Wall Street estimates.
- Adjusted earnings before interest, taxes, depreciation and amortization -- a closely watched measure of profit -- amounted to $56 million last quarter, topping the $50.5 million projected by analysts. Revenue also exceeded predictions.
- The results support claims by Chief Executive Officer Frank Gibeau that he has turned around the social-gaming company after years of struggles.
- The first-quarter forecast was a mixed bag, with earnings projected to be higher than expected but sales falling short. San Francisco-based Zynga said that accounting rules explained the revenue shortfall.
- After early hits such as FarmVille and Zynga Poker peaked, the company has fought to win back territory on users’ devices. Merge Dragons and Empires & Puzzles have been recent successes for Zynga.
- The shares climbed as much as 7.1 percent to $4.83 in extended trading after the results were released. They’re up 15 percent this year through the close.
To see Zynga’s release, click here.
©2019 Bloomberg L.P.