First sentence has been changed to reflect Zynga's share price.
Zynga, which derives a significant portion of its revenue from Facebook (FB), reported second-quarter earnings of 1 cent a share on $332 million in revenue. Facebook is scheduled to report its earnings tomorrow.
Analysts polled by Thomson Reuters expected the San Francisco-based company to generate 6 cents a share on $344.85 million in revenue.CEO Mark Pincus mentioned the decline in bookings. "Despite this, we're optimistic about the long-term growth prospects on mobile where we have a window of opportunity to drive the same kind of social gaming revolution that we enabled on the web," Pincus said in a company statement. Zynga also sharply cut its fiscal year 2012 forecast, citing "delays in launching new games, a faster decline in existing web games due in part to a more challenging environment on the Facebook web platform, and reduced expectations for Draw Something." It now sees earnings of 4 to 9 cents a share. Wall Street analysts are looking for earnings of 27 cents per share. Shares of Zynga closed up sharply in Wednesday trading, gaining 3.32% to wind up at $5.08. Shares are rocketing lower in after-hours, down 36.98% to $3.20, according to Nasdaq.com. The company will hold a conference call at 5 p.m. EST to discuss the results. Interested in more on Zynga? See TheStreet Ratings' report card for this stock. Check out our new tech blog, Tech Trends. Follow TheStreet Tech on your wireless devices. --Written by Chris Ciaccia in New York >Contact by Email. Follow @Commodity_Bull
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV