NEW YORK (TheStreet) -- Zynga (ZNGA) shares are up 8.99% to $2.85 in after-hours trading on Wednesday following the release of the social game maker's first quarter earnings results after the closing bell today.
The San Francisco-based company reported a first quarter net loss of 1 cent per share, topping analysts' expectations of a 2 cent per share loss for the period. Revenue of $167 million for the period also topped analysts' $148 million forecasts.
For the current quarter the company forecast a 2 cent net loss that is in line with analysts' expectations.
Separately, the company provided details of its resturcturing plan, announcing that it would be laying off about 18% of its global workforce in a plan that is expected to save the company approximately $100 million in operating expenses.
TheStreet Ratings team rates ZYNGA INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate ZYNGA INC (ZNGA) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."
Highlights from the analysis by TheStreet Ratings Team goes as follows: