Zynga Shares Add 3% as Share Buyback Plan Offsets Q3 Miss

Shares of Zynga (ZNGA) were higher over 3% on Thursday as the games developer announced plans to buy back $200 million in shares over two years, offsetting mixed Q3 results and a downside guidance for Q4.

The company said it is “making steady progress, and as we look for opportunities to create shareholder value we continue to assess our capital allocation strategy.”

As part of that effort, Zynga said, it plans to buy back $200 million in shares through October 2018.

Q3 loss was $0.05 per share, widening from a loss of $0.01 per share last year and missing the GAAP consensus for a loss of $0.03 a share as compiled by Capital IQ.

Revenues rose to $182.4 million from $181.7 million and were about in line with the $182.8 million mean estimate.

For Q4, Zynga expects a loss of $0.03 per share, wider than the consensus for a loss of $0.02 per share, on revenues of $180 million to $190 million, also below the $204.8 million mean estimate.

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