Electronic Arts Inc. (EA) Earnings, Revenue Miss Expectations

Electronic Arts Inc. (NASDAQ:EA) reported on its latest quarter after the bell Tuesday, yielding lower-than-expected earnings that topped year-ago figures.

Electronic Arts Inc. (EA)Its net loss came in at $186 million, or 60 cents per share, below the year-ago breakeven mark of 0 cents per share. Analysts were calling for a loss of 23 cents per share for the period.

Revenue also missed the mark for Electronic Arts, coming in at $1.97 billion, dipping 4.8% compared to the year-ago quarter. The Wall Street consensus estimate called for revenue of $2.01 billion.

The company’s digital net revenue for the period was $780 million, a 14% increase compared to the year-ago quarter, while packaged goods and other net revenue were $380 million, falling 18% year-over-year. The change in deferred net revenue was $811 million.

Electronic Arts has also been in the process of reducing its share count, buying back 1.4 million shares of EA stock for $150 million during its third quarter. Over the past 12 months, the company has spent $578 million buying back stock.

The change in corporate taxes is slated to have a positive effect on the company’s stock over the coming year. However, the company’s gaming portfolio is a strong one that’s slated to grow in coming months.

EA said that its FIFA community grew to almost 42 million players on console alone, while FIFA Mobile added 26 million players to its base during the quarter.

EA stock popped 7% after the bell Tuesday.


Article printed from InvestorPlace Media, https://investorplace.com/2018/01/electronic-arts-inc-ea-2/.

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