Zynga (ZNGA) Stock Plunges on Weak Q1 Sales Guidance

NEW YORK (TheStreet) -- Zynga (ZNGA) stock is declining 13.38% to $1.85 in early afternoon trading on Thursday after the company set its 2016 first quarter revenue guidance below Wall Street estimates.

The mobile gaming company expects to report bookings, or adjusted revenue, in the range of $150 million to $165 million, significantly below estimates of $172.3 million.

Zynga estimates it will break even or deliver a non-GAAP loss of 1 cents per share for the 2016 first quarter. Wall Street is anticipating the company to break even.

Additionally, after yesterday's market close, the maker of Words With Friends and Farmville reported breakeven results for the 2015 fourth quarter, which is what analysts estimated.

Adjusted revenue was nearly flat year-over-year at $182.1 million, beating estimates of $178.67 million for the latest quarter. 

Separately, Zynga has a "hold" rating and a letter grade of C- at TheStreet Ratings because of the company's strengths, such as revenue growth, largely solid financial position and compelling growth in net income, and its weaknesses, including weak operating cash flow and generally disappointing stock performance.

You can view the full analysis from the report here: ZNGA

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. 

ZNGA Chart ZNGA data by YCharts

More from Markets

Facebook Set For Biggest Gain in Two Years After Q1 Earnings Top Forecasts

Facebook Set For Biggest Gain in Two Years After Q1 Earnings Top Forecasts

European Automakers Gain on Reports China Mulling Auto Tariff Reduction

European Automakers Gain on Reports China Mulling Auto Tariff Reduction

Global Stocks Mixed, U.S. Futures Soften as Earnings, Oil, Rates Cloud Sentiment

Global Stocks Mixed, U.S. Futures Soften as Earnings, Oil, Rates Cloud Sentiment

Deutsche Bank Plans 'Significant' Job Cuts as Q1 Profits Slump

Deutsche Bank Plans 'Significant' Job Cuts as Q1 Profits Slump

Samsung Posts Record Q1 But Adds Cautious Voice To Smartphone Demand Forecasts

Samsung Posts Record Q1 But Adds Cautious Voice To Smartphone Demand Forecasts