Earnings Results: Electronic Arts gets Q1 top line beat, despite worries about sales slowdown

by | Aug 2, 2022 | Stock Market

Electronic Arts Inc. shares fluctuated in the extended session Tuesday after the videogame publisher reported solid revenue growth that comfortably beat Wall Street’s forecast. The company posted strong first-quarter sales despite broader concerns that the pandemic boom in videogames could disappear this year. EA
stock closed down 1.5% at $128.89 in the regular session.

The videogame giant reported net income of $311 million, or earnings of $1.11 a share, compared to net income of $204 million, or earnings of 71 cents a share in the same period last year. The company reported revenue of $1.767 billion, compared with revenue of $1.551 billion in the prior year’s quarter. Analysts tracked by FactSet had forecast revenue of $1.259 billion and earnings of 89 cents a share, or 33 cents a share on an adjusted basis. Also see: The pandemic boom in videogames is expected to disappear in 2022 Bookings, which account for deferred revenue, reached $7.478 billion over the trailing past 12 months, a 22% year-over-year increase according to Electronic Arts. Net bookings for the quarter were $1.299 billion, compared with $1.336 billion in the year-ago quarter. Electronic Arts’ FIFA franchise and the successful launch of the company’s latest “F1” game drove net bookings outperformance, according to the company’s CFO Chris Suh, in a statement. The publisher of the “Madden NFL” franchise and action titles like “Apex Legends” and “Battlefield 2042” als …

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