Electronic Arts Earnings: EA Stock Falls 4% Despite Fiscal Q4 Beat

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Electronic Arts (NASDAQ:EA) earnings for fiscal fourth quarter of 2020 have EA stock falling after-hours Tuesday. This is despite the video game company reporting diluted earnings per share (EPS) of $1.43 on revenue of $1.39 billion. These are both better than Wall Street’s estimates of 98 cents per share and revenue of $1.19 billion.

Electronic Arts Earnings: EA Stock Falls 4% Despite Fiscal Q4 Beat

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Let’s take a more in-depth look at the most recent Electronic Arts earnings report below.

  • Diluted per-share earnings are up 107.3% from 69 cents during the same time last year.
  • Revenue comes in 12.1% higher than the $1.24 billion reported in the fiscal fourth quarter of 2019.
  • Operating income of $401 million is a 104.6% increase year-over-year from $196 million.
  • The Electronic Arts earnings report also includes a net income of $418 million.
  • That’s a 100% boost compared to its net income of $209 from the same period of the year prior.

Blake Jorgensen, COO and CFO of Electronic Arts, said this about the fiscal Q4 earnings:

“We’ve had a strong year. Our results this quarter prove the value of the live services path we’ve been on now for a decade. The breadth and depth of our live services give the flexibility we need at times like this to meet player needs.”

Electronic Arts also includes an outlook for fiscal 2021 in its current earnings report. This has it expecting diluted EPS of $3.35 on revenue of $5.525 billion. Wall Street’s estimates are for diluted EPS of $4.96 on revenue of $5.37 billion during the year.

EA stock was down 4.3% after markets closed on Tuesday.

As of this writing, William White did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2020/05/electronic-arts-earnings-hit-ea-stock-despite-beat/.

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