Shares in companies including GameStop (NYSE:GME), Sony (NYSE:SNE), Microsoft (NASDAQ:MSFT), and Take-Two (NASDAQ:TTWO) will be affected by a disclosure from Electronic Arts (NASDAQ:ERTS) that it will badly miss its earnings forecasts.
EA said that it expects GAAP and non-GAAP net revenue and earnings per share for the fiscal year ending March 31, 2010 to be below the financial guidance previously provided on November 9, 2009. Revised fiscal year 2010 expectations are primarily the result of weakness for EA and the overall packaged goods sector in Europe in December, and a product mix shift to lower margin distribution products in the December quarter, primarily in North America.
GAAP net revenue is expected to be $1.227 billion to $1.247 billion and GAAP diluted loss per share is expected to be in the range of $0.24 to $0.32 for the quarter which ended December 31.
GAAP net revenue is expected to be $3.6 billion to $3.675 billion for fiscal year 2010, which ends March 31, versus prior guidance of $3.6 billion to $3.9 billion. GAAP diluted loss per share is expected to be in the range of $1.94 to $2.24 for fiscal year 2010 versus prior guidance of $1.20 to $2.05.
EA shares are down 8% after hours to $16.35
Douglas A. McIntyre
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