Zynga stock jumps despite earnings errors, as annual guidance goes up
Zynga Inc.
ZNGA, -2.65%
shares shot more than 7% higher in the demand trade Wednesday despite an earnings error, as the company reported strong orders and increased revenue expectations for the year. Zynga reported a $ 128.8 million loss in the first quarter, or 14 cents per share, on sales of $ 265.4 million, up from $ 208.2 million in the same quarter a year ago. The video game company reported orders, representing future business deals, of $ 359 million, up substantially from $ 162 million a year ago. After adjustments for share-based compensation and other effects, Zynga claimed a loss of 7 cents per share, down from adjusted earnings of 3 cents per share a year ago. On average, analysts expected Zynga to report adjusted earnings of 5 cents per share on revenue of $ 328 million, according to FactSet. Zynga added $ 50 million in its annual revenue forecast, making it $ 1[ads1].2 billion, and $ 100 million on the order guide, making it $ 1.45 billion. In a letter to investors, the company owed quarterly losses on an increase in deferred income, which will be recognized later. The Zynga shares were closed at a five-year high of $ 5.66 on Tuesday, but fell 2.7% on Wednesday before the earnings report. The shares have achieved 57.2% over the past year, as the S & P 500 index has increased by 11%.
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