- Sterne Agee (Neutral) has slashed its Zynga (ZNGA -8.2%) estimates ahead of the social gaming firm's Q4 report (due in the coming weeks), and declared Zynga's Q1 guidance is "likely to disappoint."
- Sterne's Q4 bookings estimate has been cut to $130M from $137M - Zynga set a guidance range of $130M-$140M in October - and its Q1 bookings estimate all the way to $116M from $137M.
- The firm now believes Q1, rather than Q4, will represent Zynga's bookings bottom; its estimates imply 50% Y/Y bookings drops for both quarters. Sterne's 2014 estimates are unchanged, but it think consensus forecasts for the year might be too high.
- The fact Sterne has been either bearish or neutral on Zynga since its $10/share IPO likely gives its views added credibility in the eyes of some investors.
Zynga dives; Sterne Agee thinks guidance will disappoint
Jan 16 2014, 11:33 ET