Media

Electronic Arts Reports Revenue Miss, Okay Earnings

Electronic Arts Inc. (NASDAQ: EA) reported a first fiscal quarter adjusted EPS loss of -$0.41 and $491 million in non-GAAP revenue after markets closed this afternoon. The EPS loss was worse compared with last year’s EPS loss of -$0.37 in the same period a year ago, while revenue was down from $524 million, a drop of -6%. The results compare to the Thomson Reuters consensus estimates for an EPS loss of -$0.42 and $500.1 million in revenue.

The video game maker offered second fiscal quarter guidance of $1.05-$1.10 billion in revenue, short of the consensus estimate of $1.08 billion, and adjusted EPS guidance of $0.07-$0.12, again short of the consensus estimate of $0.14. Full-year guidance for calls for EPS of $1.05-$1.20 and full-year revenue of $4.10-$4.25 billion. Full-year guidance is again short of the current consensus estimate of $4.31 billion in revenue, but better than the consensus EPS estimate of $1.07.

The company’s CFO did a little cheerleading:

We had a solid first quarter and are reconfirming non-GAAP guidance of annual earnings per share growth of 30% at the midpoint of our guidance. The $500 million stock buyback demonstrates our confidence in EA’s future.

Electronic Arts today also announced a free-to-play option for its “Star Wars: The Old Republic” game.The free-to-play option includes access to eight storylines up to game level 50.

The company also said it would repurchase $500 million in stock.

Shares are up 1.6% in after-hours trading at $211.02, after posting a new 52-week low in regular trading today of $10.77. The current 52-week range is $10.77-$26.13. Thomson Reuters had a consensus analyst price target of $19.19 before today’s results were announced.

Paul Ausick

Find a Qualified Financial Advisor (Sponsor)

Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to 3 fiduciary financial advisors in your area in 5 minutes. Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests. If you’re ready to be matched with local advisors that can help you achieve your financial goals, get started now.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.