Electronic Arts (NASDAQ:ERTS) posted non-GAAP EPS of $0.27 on revenues of $640 million; Analysts were looking for $0.20 EPS on $896 million revenues but there is a revenue deferral and recognition issue for the discrepancy there. The changes resulted in a $296 million sequential net increase in deferred net revenue as of September 30, 2007, which will be recognized in future periods. For fiscal March 2008, EA see $0.85 to $1.15 EPS (down $0.05 fromPandemic/BioWare buyout) and see revenues excluding deferrals at $3.8to $4.0 Billion; estimates are $1.15 EPS and $3.77 Billion in revenues.
Pretty impressive title sales are as follows:
- Madden NFL 08 sold 4.5 million copies and was EA’s best performing title in the quarter.
- FIFA 08 sold 2.9 million copies internationally – with sell through at retail up double digits year-over-year.
- MySims, a new owned intellectual property, sold over one million copies on the Nintendo DS™ and Wii.
It also went back over some reorganization charges. The Company expects to incur total pre-tax charges of between $90 million and $110 million, the majority of which will be incurred in fiscal 2008. The Company estimates these actions will result in annual pre-tax cost savings of approximately $25 million to $30 million.
EA is seeing shares up 0.8% in after-hours trading at $59.23, but shares closed down almost 4% at $58.74 in normal trading. The 52-week trading range is $46.27 to $61.62.
Jon C. Ogg
November 1, 2007
Is Your Money Earning the Best Possible Rate? (Sponsor)
Let’s face it: If your money is just sitting in a checking account, you’re losing value every single day. With most checking accounts offering little to no interest, the cash you worked so hard to save is gradually being eroded by inflation.
However, by moving that money into a high-yield savings account, you can put your cash to work, growing steadily with little to no effort on your part. In just a few clicks, you can set up a high-yield savings account and start earning interest immediately.
There are plenty of reputable banks and online platforms that offer competitive rates, and many of them come with zero fees and no minimum balance requirements. Click here to see if you’re earning the best possible rate on your money!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
