The company’s strengths can be seen in multiple areas, such as its notable return on equity, expanding profit margins and impressive record of earnings per share growth.
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While King is performing well with three top 10 games, it is not growing its player base. The shares closed down 0.43 points or 2.75% at $15.2 with 4,411,757 shares getting traded. Whether someone somewhere gained early knowledge of a poor pending earnings report or not, that activity was wild and caught the attention of many active daytraders. Its revenue declined 17.5 percent year-over-year to $489.5 million. “The average estimate among 22 Estimize users was for earnings of $0.46 per share and revenue of $525.49 million”.
Net income fell to US$119.3mil (RM488.3mil), in the second quarter from US$165.4mil (RM677mil), a year earlier.
The company said it expects third-quarter gross bookings of $460 million to $485 million – well short of the Street’s consensus of $516 million, according to FactSet. Stifel Nicolaus reiterated a “buy” rating and set a $20.00 target price (up previously from $19.00) on shares of King Digital Entertainment PLC in a research report on Saturday, May 23rd.
King wound up closing the regular trading session at $15.20.
Some of the fall was the result of fewer new games launching so far this year, and the continued decline of revenues from Candy Crush Saga that has not yet been supplanted by its new incarnation, Candy Crush Soda.
Shares of King Digital Entertainment plc appreciated by 1.33% during the last five trading days but lost 1.94% on a 4-week basis.
The company launched in April its first word game, AlphaBetty Saga.
King’s main competition, which is Zynga Inc., known for their popular game FarmVille and Mafia Wars also recently forecast poor quarter bookings which were well below estimates. King Digital Entertainment PLC has a 52-week low of $10.68 and a 52-week high of $18.00. King Digital Entertainment plc (NYSE:KING): On Monday heightened volatility was witnessed in King Digital Entertainment plc (NYSE:KING) which led to swings in the share price. The Company has four franchises: Candy Crush, Farm Heroes, Bubble Witch and Pet Rescue. It also offers king.com and royalgames.com Websites; facebook; and mobile platforms, such as iOS and Android.
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King Digital Entertainment plc is an interactive entertainment company for the mobile world.
