Earnings Results: Electronic Arts’ sales disappoint but earnings forecast increases

by | Nov 1, 2022 | Stock Market

Electronic Arts Inc. missed sales expectations in a quarterly report Tuesday, as executives reduced their revenue and bookings guidance for the year but increased their forecast for profit. Known for its sports franchises like “Madden NFL” as well as action titles like “Apex Legends” and “Battlefield 2042,” EA
reported fiscal second-quarter net income of $299 million, or $1.07 a share, up from $1.02 a share a year ago. EA did not provide adjusted earnings information, though analysts tend to estimate and judge the company on those results.

Revenue rose to $1.9 billion from $1.83 billion in the year-ago quarter. Bookings, which account for deferred revenue, reached $7.38 billion over the past 12 months, the company said. Net bookings for the quarter were $1.75 billion, compared with $1.85 billion in the year-ago quarter. Analysts surveyed by FactSet had forecast earnings of $1.37 a share on revenue of $1.94 billion and net bookings of $1.81 billion. EA shares initially fell about 2% in after-hours trading following the release of the results, but ended extended trading up slightly following a 0.3% gain to $126.27 in the regular session. Videogame companies have struggled this year, as a pandemic-era boom in gaming slows down and software publishers face comparisons to huge growth in the previous years. EA has held up better than most, however, as its sports-themed games tend to bring in regular customers every year — including a “record” launch fo …

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