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What to Expect as Zynga Reports 4Q17 Results

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Zynga due to report earnings

Video game publisher Zynga (ZNGA) is scheduled to report its 4Q17 earnings on February 7, 2018, the same day as industry peer Take-Two Interactive Software (TTWO) plans to report its fiscal 3Q18 (December 2017 quarter) results. Glu Mobile (GLUU) and Activision Blizzard (ATVI), Zynga’s other industry peers, have their December quarter earnings reports coming up on February 8, 2018. Electronic Arts (EA) reported its December quarter earnings on January 30, 2018.

Electronic Arts’ top line slightly beat expectations, but its bottom line metric missed expectations, largely due to the impact of the recent tax reform legislation.

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Internal guidance calls for revenue of $215 million

While reporting its 3Q17 results in November 2017, Zynga provided a way to measure its top line in the upcoming report. Wall Street also has expectations for the quarter.

Zynga’s guidance called for 4Q17 revenue of $215 million, implying that management is expecting growth since the company posted revenue of $190.5 million in 4Q16. Wall Street is expecting revenue of $213.2 million in 4Q17.

The chart above shows how Zynga’s 4Q17 revenues have trended over the last few years.

Zynga’s loss per share narrowed

Zynga didn’t provide guidance for its 4Q17 EPS (earnings per share). However, Wall Street is expecting EPS of $0.03. In 4Q16, Zynga posted EPS of -$0.04, which was below the consensus estimate of $0.01. Its 4Q16 EPS improved from -$0.05 in 4Q15.

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