King Digital Entertainment (KING), the creator of the hit game, “Candy Crush Saga” just reported its earnings after the market closed today. The report was for the fiscal Quarter ending June 2014, but this is more than just another earnings announcement. The significance of this earnings report will be whether or not (KING) was a one trick pony with its game, “Candy Crush Saga”.
The company reported second-quarter earnings of 52 cents per share on $594 million in revenue. Analysts had expected King Digital Entertainment (KING) to report earnings of 50 cents a share on $608 million in revenue. The stock fell about 20.6% in after hours trading in response to the lackluster revenue.
King Digital opened for public trading in March and has been trying to ride the Candy Crush wave for as long as possible while frantically trying to create another popular hit game. So far, the company has failed to strike gold with another game, though it will undoubtedly keep trying to diversify its revenue base.
Currently, KING has a Zacks Rank #3 (Hold) and it finds itself in the internet software industry. This very broad space is currently in the top 40% from a Zacks Industry Rank perspective, so there are plenty of other better positioned stocks out there in this corner of the market.
Check back tomorrow for a more in-depth look at KING's earnings.
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