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Zynga Inc (ZNGA), SeaWorld Entertainment (SEAS), NVIDIA Corporation (NVDA) – Earnings in Focus

earnings Zynga Inc Seaworld Entertainment Nvidia Inc

Zynga Inc , SeaWorld Entertainment Inc and NVIDIA Corporation will report quarterly results on Thursday. Here’s what investors can expect:

earnings Zynga Inc Seaworld Entertainment Nvidia Inc

Zynga Inc

The Mobile game maker is scheduled to release quarterly numbers after the close of trade on Thursday. The average analysts’ estimate is for EPS of -$0.02. Sales are pegged to come in at $157 million.

Unlike traditional gaming companies such as Activision Blizzard, Inc, which charge a minimum of $50 for a game, Zynga Inc operates on a “freemium” model that rely on users spending on frequent inexpensive transactions. However, the cost to produce new games is high, and if they fail to appeal to customers, the company’s bottom-line takes a big hit.

In Zynga Inc s case, its most popular product, Farmville, managed to achieve a peak user-base of 80 million in 2010, but has been in decline ever since. The company is yet to replicate that success, due to which, post the IPO in late 2011, the stock has fallen close to 80 percent.

SeaWorld Entertainment Inc

SeaWorld Entertainment Inc is all set to report second-quarter results before the start of trade on Thursday. The consensus estimate is for earnings of 40 cents per share, down from 43 per share in the same period last year.

The company has failed to meet the consensus estimate in four out of the last five quarters. However, amid successful cost cuts and improved attendance, the theme-park operator topped earnings-per-share forecasts last quarter. First-quarter attendance increased to 3.2 million from 3 million in the corresponding period last year.

Revenue should come in at around $397 million, also down from $405 million a year earlier. SeaWorld Entertainment Inc beat Street expectations by 2 percent in the last reported quarter, and by 4.5 percent in the fourth quarter.

Shares of SeaWorld Entertainment Inc have tumbled 19 percent in the last three months, and are down 37 percent from a year ago, greatly underperforming the S&P 500 index, which is down 1 percent and up 8.5 percent over the same time frames. According to a poll conducted by FactSet, of the eight analysts covering the stock, three rate it as a “buy,” four a “hold” and one has a “sell” call. The average target price for a 12-month horizon is $23.60.

NVIDIA Corporation

The graphics chip maker will post second-quarter results after the market closes on August 6. The average analyst estimate is for EPS of $0.10, a drop from $0.22 in the year ago period. However, the range of estimates is wide, ranging from a loss of $0.09, to a profit of $0.14.

Analysts expect NVIDIA Corporation to record sales of $1.01 billion, a decline of 8.4 percent on a y-o-y basis. This drop is revenue is largely projected due to the weakness in the PC market and the continued strength in the U.S. dollar.

While the core numbers are more than likely to be bad, NVIDIA Corporation ‘s strong presence in the gaming space should somewhat stem the negative trend. Shares closed Tuesday at $20.37.

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