Thursday, October 4, 2012

Zynga Inc (NASDAQ:ZNGA) Tumbles To New Low On Poor Guidance

Nothing is going right at this moment with Zynga Inc(NASDAQ:ZNGA) as the stock plummeted another 15% after the recent tumble since its IPO last year.

The stock smashed by 15% in after hours as the company issues an earnings warning stating that the company would post heavy losses in the third quarter. If that’s not enough, the company also trimmed its earnings outlook for the year 2012, stating launch delays and lowered expectations for recent games such as "The Ville".

Will ZNGA Rebound After Today’s Slump? Find Out Here

The company now projects to book a loss of 12 to 14 cents per share in the latest quarter, while on an adjusted basis the company expects to break even or post a loss of 1 cent per share.

The struggling online gaming, whose majority of revenue dependent on Facebook, is projecting $300 million to $305 million in revenue.

Analysts currently estimate the company breakeven earnings on revenue of $286.7 million, according to FactSet.

Zynga will take a charge of $85 million to $95 million on its OMGPop acquisition, the company behind "Draw Something."

Moreover, for 2012, the company expects EBITDA of $147 million to $162 million, lower than earlier estimated $180 million to $250 million previously.

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