Shares of Zynga Inc. (NASDAQ: ZNGA) plunged about 4.65% by afternoon trade. Morgan Stanley’s analyst Scott Devitt downgraded the social game maker’s stock to “underweight” from “overweight”. The research reports said that the popularity of its titles such as “FarmVille” “Poker” was fading fast as the competition was rising, adding that Zynga still relies far too heavily on Facebook Inc (NASDAQ: FB) to attract gamers. The research report said that company’s transition towards mobile gaming business will take some more time. Devitt thinks that Zynga might also slash more jobs in the futures, citing that it still employs more than required staff, which is weighing on EBITDA margin, the report added.
Shares of Oracle Corporation (NASDAQ: ORCL) slumped about 8.90% by afternoon trade. Although the enterprise software maker’s fiscal fourth quarter earnings increased 10% due to higher margin, both adjusted earnings and revenue missed company’s own earlier projections.
For the recently concluded quarter ended May 31, Oracle Corp posted a profit of $3.81 billion or 80 cents a share up from net income of $3.45 billion or 69 cents a share, in the same period of last fiscal year. After excluding onetime items such as stock based compensations and costs linked to acquisition, non-GAAP earnings climbed to 87 cents a share compared to 82 cents a share, in the year earlier quarter. Revenue crawled up 0.3% to $10.95 billion. In March, Oracle provided earnings guidance of 85 cents to 91 cents a share on revenue growth of 1% to 4%. Separately, Oracle said that it will now get itself listed at the New York Stock Exchange soon; but the ticker “ORCL” will not change.
Shares of CarMax Inc. (NYSE: KMX) fell about 2% by afternoon trade—in spite of strong quarterly results. The U.S’s biggest used vehicles seller said that fiscal first quarter income rose 21% as sales of used cars rose 22% with average selling price rising more than a percent to $19,540. Same-store-sales, a key gauge on retailer’s performance, climbed 17%.
Shares of Darden Restaurants Inc. (NYSE: DRI) fell about 3% by afternoon trade after the parent company of hotel chains such as Olive Garden and Red Lobster handed lower-than-expected earnings for the fiscal fourth quarter; revenue topped expectation though. For the quarter ended May 26, Darden posted net income of $133.2 million or $1.01 a share compared to a profit of $151.2 million or $1.15 a share, in the year-earlier quarter. Sales rose 11% to $2.3 billion, driven by additions of 44 Yard House Restaurants. Analysts’ consensus estimate was for earnings of $1.03 a share on revenue of $2.27 billion. The Company said higher food, beverages and labor cost put pressure on margin. For the new fiscal year, Darden expects earnings to grow by 4% to 6% on revenue growth of 6% to 8% while analysts polled by Thomson Reuters had forecasted for earnings rising by 1% on 7% sales growth.
Shares of Theravance Inc. (NASDAQ: THRX) rallied about 9.30% by afternoon trade after the company said that it will be splitting business into two publicly traded entities.
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