Zynga Forecasts Q3 Loss, Lowers Outlook
More bad news from beleaguered social games maker Zynga. The company on Thursday said it expects a loss for the third-quarter on weak demand for certain games and lowered its full-year outlook.
The company expects to report a net loss of between 12 cents and 14 cents a share and, or between break-even and a loss of 1 cent per share on an adjusted basis for the quarter.
In preliminary results released after the market close today, Zynga forecast Q3 revenue in the range of $300 million to $305 million. Analysts have projected break-even earnings on revenue of almost $287 million.
For the full year, Zynga cut its revenue outlook from a range of $1.085 billion to $1.1 billion from $1.15 billion to $1.23 billion, and below the average analyst estimate of $1.21 billion.
The company behind games including “FarmVille,” “CityVille” and “Words With Friends” will also take a charge of $85 million to $95 million on its acquisition of OMGPop, the creator of “Draw Something,” which Zynga bought this year for $200 million.