Zynga Shares Plunge After Hours on Lowered Expectations
The maker of social games including "Words With Friends" expects to report a loss of up to 14 cents a share in the third quarter.
Shares of Zynga were plunging 19 percent after the closing bell when the maker of Words With Friends disclosed it expected a loss in the third quarter.
Zynga said Thursday it expects revenue of up to $305 million but a loss of up to 14 cents a share, while analysts expected the company to break even in the quarter that ended Sep. 30.
Zynga also said it would take a charge of up $95 million for its acquisition of Omgpop, the company that makes Draw Something, a game that has not been living up to expectations lately.
Zynga blamed the shortfall on The Ville, which hasn't been performing well, causing a delay in launching several new games.
Mark Pincus, the company's CEO and founder, said the company would be implementing "targeted cost reductions in the fourth quarter and rationalizing our product R&D pipeline."
Zynga stock was up 2 cents to $2.82 during regular trading but plunged 54 cents after the closing bell.
- John Oliver on the Luxurious 'Freedom' of HBO, His Complicated Relationship With NYC
- The Hollywood Reporter's 35 Most Powerful People in New York Media 2014
- Cannes Preview: The Hot Movies in the Running to Hit the Croisette
- CBS' $67 Million Man: Does Leslie Moonves' Moolah Make Sense?
- Glenn Beck Moves Into Movie Production (Exclusive)
- MOST SHARED
- MOST POPULAR
- This Week’s Best Game of Thrones Reader Comments: ‘The Lion and the Rose’
- Douglas Coupland on Being a Visual Artist, the ‘Torture’ of Interviews, and Unintended Side Effects
- Alan Thicke on His New Reality Sitcom and Being ‘Considerably More Boring Than Jason Seaver’
- 6 Forgotten Teen Films of the Late ’90s and Early ’00s