King Digital (KING) Stock Continues to Fall on Weak Revenue Guidance

NEW YORK (TheStreet) -- King Digital Entertainment (KING) shares are down 2.85% to $14.64 in afternoon trading on Monday as the mobile gaming company's stock continues to suffer from the lowered revenue guidance the company issued before its previous trading session on Friday.

The Dublin, Ireland-based maker of the popular mobile game 'Candy Crush' said that it expects to see "seasonally softer" revenue heading into the middle of the year.

The company forecast gross bookings, or spending by players, to be between $490 million and $520 million, short of the $604 million the company reported in the previous quarter.

"Taking these factors into account as we look toward the remainder of the year, we expect the mid-year period to be seasonally softer, returning to growth trends in the latter part of the year," the company said.

Friday's warning came after the company reported relatively strong first quarter financial results on Thursday, beating analysts' 53 cent per share expectations by posting earnings of 61 cents per share. Revenue of $569.5 million also topped analysts' $563.42 million guidance.

TheStreet Ratings team rates KING DIGITAL ENTERTAINMENT as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:

"We rate KING DIGITAL ENTERTAINMENT (KING) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its notable return on equity, expanding profit margins and impressive record of earnings per share growth. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall."

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