News

Earnings Results: Electronic Arts stock slips following earnings

0

Electronic Arts Inc. shares slipped in the extended session Tuesday after the videogame publisher reported its quarterly results.

EA 
EA,
+0.50%

shares declined 1.3% after hours, following a 0.5% rise to close at $141.36. Shares are up 20% over the past 12 months, compared with a 42% gain on the S&P 500 index
SPX,
-0.87%
.

The company reported fiscal fourth-quarter net income of $76 million, or 26 cents a share, compared with $418 million, or $1.43 a share, in the year-ago period. EA had forecast an adjusted loss of 7 cents a share that included a 52-cents-a-share tax accounting charge.

Revenue declined to $1.35 billion from $1.39 billion in the year-ago quarter, while bookings, which account for deferred revenue, rose to $1.49 billion for the quarter compared with $1.26 billion a year ago..

Analysts surveyed by FactSet had forecast earnings of 60 cents a share on revenue of $1.4 billion.

“With tremendous engagement across our portfolio, we delivered a record year for Electronic Arts,” said Andrew Wilson, EA’s chief executive, in a statement. “We’re now accelerating in FY22, powered by expansion of our blockbuster franchises to more platforms and geographies, a deep pipeline of new content, and recent acquisitions that will be catalysts for further growth.”

 EA, known for sports games such as “FIFA 21” and “Madden NFL 21,” as well as action titles like “Apex Legends,” just closed on its $2.4 billion acquisition of Glu Mobile Inc., after finishing off its $1.2 billion acquisition of Codemasters Group Holdings PLC in February.

“EA delivered a strong quarter, driven by live services and Apex Legends’ extraordinary performance,” said Blake Jorgensen, EA’s financial chief, in a statement. “Apex steadily grew through the last year, driven by the games team and the content they are delivering.”

EA forecast about 24 cents a share on revenue of about $1.48 billion for the fiscal first quarter, and unadjusted earnings of about $1.34 a share on revenue of about $6.8 billion for the year.

Analysts had estimated unadjusted earnings of 65 cents a share on revenue of $1.12 billion for the first quarter, and unadjusted earnings of $4.56 a share on revenue of $6.52 billion for the year.

Earnings Results: Grocery Outlet stock sinks after sales miss

Previous article

Market Extra: What is the Jones Act? And why might waiving it help ease gas ‘supply crunch’?

Next article

You may also like

Comments

Leave a reply

Your email address will not be published. Required fields are marked *

More in News