Editor's Note: Story has been corrected to represent King Digital's adjusted earnings for the period as compare to analysts' expectations.
NEW YORK (TheStreet) -- King Digital (KING) shares are up 3.7% to $13.68 in early market trading on Friday after the Candy Crush Saga video game company had its "outperform" rating reiterated by analysts at Wedbush following the company's third quarter revenue beat.
Despite the optimistic outlook, the firm also lowered the company's price target to $21 from $22 in its research note today.
"King saw bookings decline by less than its guidance contemplated, and its Q4 guidance suggests stabilizing revenues and bookings. Q3 bookings were $19 million above the high end of guidance, and guidance calls for flat sequential Q4 bookings. In the meantime, profitability, free cash flow, and shareholder returns continue," said analysts at the firm.
The company reported third quarter revenue of 45 cents per diluted share, beating analyst estimates by 8 cents, on adjusted revenue of $523.4 million which also topped analysts' $495.26 million revenue expectations.KING data by YCharts