NEW YORK (AP) — Shares of Zynga climbed in premarket trading on Wednesday as the online games company's fourth-quarter adjusted profit and revenue topped analysts' estimates.
Zynga Inc. reported late Tuesday that its quarterly loss narrowed to 6 cents per share from a loss of $1.22 per share a year earlier. Its adjusted profit was 1 cent per share. Revenue was basically flat at approximately $311 million.
Analysts surveyed by FactSet expected a loss of 3 cents per share on revenue of $250 million.
The company managed to cut expenses by laying off workers, closing offices and shutting down poorly performing games.
Jefferies' Brian Pitz said in a client note that Zynga Inc. had a solid beat for the quarter, but that he's still taking a bit of a wait-and-see approach with the company until there's evidence of "real momentum."
The analyst is concerned that Zynga anticipates ongoing booking declines in the first quarter, and says that visibility past that quarter is very low.
Pitz reaffirmed a "Hold" rating and lifted the company's price target to $3 from $2.50 based on the fourth-quarter results beating Wall Street's view.
Zynga's stock rose 11 cents, or 4 percent, to $2.85 before the market open. That is near the lower end of their 52-week range of $2.09 to $15.91.