Earnings Outlook for Zynga

On Wednesday, February 10, Zynga (NASDAQ:ZNGA) will release its latest earnings report. Here is Benzinga's outlook for the company.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Zynga EPS is expected to be around $0.09, according to sell-side analysts. Sales will likely be near $677.73 million. Zynga earnings in the same period a year ago was $0.08 per share. Quarterly sales came in at $433.40 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

If the company were to report earnings in line when it publishes results Wednesday, quarterly profit would be up 12.5%. Revenue would be up 56.38% on a year-over-year basis. Here is how the Zynga's reported EPS has stacked up against analyst estimates in the past:

Stock Performance

Shares of Zynga were trading at $11.02 as of February 08. Over the last 52-week period, shares are up 66.22%. Given that these returns are generally positive, long-term shareholders are probably happy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Zynga is scheduled to hold the call at 17:00:00 ET and can be accessed here.

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