Tags: Electronic Arts | video game | earnings | estimate

Electronic Arts Beats Estimates on Dragon Age, Mobile Games

Wednesday, 28 Jan 2015 06:24 AM

Electronic Arts Inc., producer of the Madden and FIFA video games, reported fiscal third-quarter results that beat analysts’ estimates, crediting new products and sales of games for the previous generation of consoles.

Profit totaled $1.22 a share, excluding items, in the quarter ended Dec. 31, Redwood City, California-based Electronic Arts said Tuesday in a statement. Analysts were forecasting 93 cents, the average of estimates. Adjusted sales of $1.43 billion beat forecasts of $1.29 billion.

The gain overshadowed a fourth-quarter forecast that was shy of Wall Street projections. Blake Jorgensen, the company’s chief financial officer, said some sales may have shifted into the period just ended. He also said lower prices for the old generation of consoles sparked demand.

“Our biggest surprise was that the old generation software did as well as it did,” Jorgensen said in an interview.

Electronic Arts rose 3.9 percent to $50.30 in extended trading after the announcement. The stock fell 2.2 percent to $48.41 at the close in New York, trimming its gain for the year to 3 percent.

Current and new games, including mobile, also contributed to the results. U.S. sales of the company’s FIFA 15 soccer game rose 10 percent in December from a year earlier, according to researcher NPD Group Inc. SimCity BuildIt, released in December, attracted 22 million downloads, the company said.

Electronic Arts forecast profit of 22 cents a share, excluding items, in the current quarter, less than the 26-cent average of analysts’ estimates. Adjusted sales will be $830 million, shy of the $910 million analysts project.

The company plans to release the delayed Battlefield: Hardline on March 17 after postponing the holiday title.

Net income for the third quarter, including items like changes in deferred revenue, totaled $142 million, or 44 cents a share, compared with a year earlier loss of $308 million, or $1 a share. Revenue grew 39 percent to $1.13 billion.

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Electronic Arts, producer of the Madden and FIFA video games, reported fiscal third-quarter results that beat analysts' estimates, crediting new products and sales of games for the previous generation of consoles.
Electronic Arts, video game, earnings, estimate
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2015-24-28
Wednesday, 28 Jan 2015 06:24 AM
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