NEW YORK (TheStreet) -- Shares of King Digital are surging while shares of Zynga are dropping after both casual game makers announced fourth quarter results and provided their respective outlooks for the first quarter. WHAT'S NEW: King Digital reported Q4 adjusted earnings per share of 57c against estimates of 47c and Q4 revenue of $546M against estimates of $519.93M. The company announced a special dividend of 84c per share and it began purchasing shares under a $150M stock repurchase program. Zynga, on the other hand, reported Q4 EPS of 0c against estimates of 0c and Q4 revenue of $192.55M against estimates of $201.11M. It also reported Q4 bookings of $182.4M, adjusted EBITDA of $9.4M and non-GAAP net loss of $2.5M. WHAT'S NOTABLE: Looking forward, King Digital expects first quarter gross bookings of $575M-$600M, with the general shape of quarterly gross bookings in 2015 to be similar to 2014. Zynga's outlook, however, fell below expectations. Zynga sees Q1 EPS of (3c)-(2c) against estimates of 9c, Q1 revenue of $155M-$165M against estimates of $200.87M and Q1 bookings of $140M-$150M. ANALYST REACTION: Earlier this morning, King Digital's price target was raised to $23 from $20 at Wedbush, which cited "solid" guidance that suggests the recent results are sustainable. Wedbush analysts are also encouraged by the company's plans to expand beyond its market beyond casual games. Pacific Crest provided a more tempered outlook for King Digital, noting that it expects some selling pressure after a coming lock-up expiration on the company's stock held by insiders and early shareholders. Pacific Crest said the company remains in a better position after its Q4 results, but it still thinks the company's outlook beyond Candy Crush isn't more certain now than it was two quarters ago. Zynga's price target was lowered to $2.50 from $3 at Piper Jaffray, citing the company's weaker-than-expected bookings in Q4. Piper Jaffray analysts say the firm is taking a "wait and see" approach on Zynga's new game titles. PRICE ACTION: Near noon, King Digital gained 12% to $16.51, while Zynga fell 15% to $2.26. Reporting by Yih Lee.
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