Earnings Forecast Report Zynga Inc (NASDAQ:ZNGA)

Earnings Forecast Report

Zynga Inc (NASDAQ:ZNGA)

How do analysts think of the quarterly and yearly earnings per share for (ZNGA)?

April, 2013

Our quantitative research models compare current (ZNGA) PE ratio with historical PE ratios, adjust the historical PEs by including the influence factors like Company Growth Rate, Company Size, Financial Leverage and Price Volatility. The adjusted PE ratio of (ZNGA) is LOWER than the industry average PE ratio.

Based on research reports of 22 research analysts from different independent research firms, the consensus earnings per share of (ZNGA) for next quarter is $-0.01 USD. The yearly earnings forecast for current year is $-0.05 USD and the forecast for next year's earnings is $0.01 USD. The the consensus target price for (ZNGA) is 4.03 USD.

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Profit margines show the ability of the company to generate profit through use of capital. Instead of Gross Profit Margin, investor should also study the trend and figure of Earning Before Tax Margin to see how the company’s operating performance without regard to tax implications. By comparing the 5 years trend of (ZNGA) Gross Profit Margin and Earning Before Tax Margin (EBT), the company's trailer 12 months EBT has showed improvement from 2012-12% to TTM%. Improvement in EBT reveals improvement in company's operating efficient.

ROE (Return on Equity) shows how well the company's management is growing the company's value at an acceptable rate. Because ROE weighs net income only againsts shareholders' equity, it doesn't reveal much about how well a company uses its financing from borrowing and bonds. A company with high financial leverage may deliver an impressive ROE (> 15%) without actually being more effective at using the shareholders' equity to grow the company. Therefore, our systems look at ROA (Return on Asset) as well as ROE to provide a clear picture of (ZNGA) management's effectiveness.The trailer 12 months ROA is -8.23% and the financial leverage of (ZNGA) is 1.41 which falls within reasonable range in the industry. The company ROE is appropriately reveals the quality of the company management.

How's net earning margin changing?

How efficient is this company using its asset?

Analyst consensus ratings?

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Account receivable turnover is a good indicator to measure how efficient of (ZNGA) using its asset. A high receivable turnover ratio indicates the company is operating in cash basis.

April, 2013

By ploying the 5 years net earning margin with trend line analysis (orange trend line), a positive upward trend line reveals the improvement of net earning power of (ZNGA) and a negative trend line gives an opposite observation.