King Digital Shares Plummet Following Q1 Report, Poor Outlook

Shares of King Digital Entertainment plummeted more than 10% after the mobile gaming company reported better-than-expected first-quarter results, but provided a downbeat outlook. Earnings for the latest quarter rose to $164.1 million, or 51 cents a share, from $127.2 million, or 41 cents a share, in the year-earlier period. Adjusted earnings per share, which excludes non-recurring items, came in at 61 cents, above the FactSet consensus of 53 cents. Revenue dropped to $569 million from $606 million in the year prior period, but beat the FactSet consensus of $553 million. Gross bookings fell 6% to $604 million. In its outlook, the company said it expects the mid-year period to be seasonally softer, with gross booking for the second quarter declining sequentially to $490 million to $520 million.