Zynga Plunges on Earnings Miss, Guidance

First sentence has been changed to reflect Zynga's share price.

NEW YORK ( TheStreet) -- Shares of social gaming company Zynga ( ZNGA)fell following a weak second-quarter earnings report.

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.

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-- Written by Chris Ciaccia in New York

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