Zynga Reports Weak Earnings: Hot Trends
Zynga reported earnings of 1 cent a share on $332 million in revenue for the quarter, while analysts polled by Thomson Reuters expected the company to report 6 cents a share on $344.85 million in revenue.
Zynga also cut its fiscal-year 2012 forecast to earnings of 4 cents to 9 cents a share, below analysts' forecasts of 27 cents. Zynga cited a decline in its existing Web games due to a "more challenging environment on the Facebook web platform" as one of the reasons for cutting its forecast. The company depends on Facebook for a significant portion of its revenue.
Zynga also said delays in new game launches and reduced expectations for its game Draw Something contributed to the reduced forecast.
Starwood Hotels and Resorts Worldwide (HOT) is trending as the hotel franchise posted a better-than-expected quarterly profit, but net income fell from a year earlier. Starwood's said quarterly profit was helped by an increase in room rates. The company said revenue per available room rose 6.9% in the quarter. Net income fell to $122 million, or 62 cents a share, down from $131 million, or 68 cents, a year earlier. The company said it expects positive trends to continue through the rest of the year. Starwood franchises hotel brands including W, Westin and Sheraton.
Nomura Holdings (NMR) is another popular search. The company's CEO Kenichi Watanabe has quit the investment bank, and Nomura has named Koji Nagai as his replacement.
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