Apps & Software

Electronic Arts Soars on New Consoles, Mobile Games

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Source: Electronic Arts Inc.
Electronic Arts Inc. (NASDAQ: EA) reported a fourth fiscal quarter and full-year 2014 results after markets closed on Tuesday. The games company posted quarterly adjusted diluted EPS of $0.48 and $914 million in non-GAAP revenue. In the same period a year ago, EA reported EPS of $0.55 on non-GAAP revenues of $1.04 billion. Fourth-quarter results compare to the Thomson Reuters consensus estimates for EPS of $0.12 and $812.35 million in revenue.

For the full year EA posted EPS of $1.69 on revenues of $4.02 billion compared with 2013 EPS of $0.84 on revenues of $3.79 billion. The consensus estimates called for EPS of $1.32 on revenues of $3.92 billion.

Regarding Titanfall, EA’s exclusive title for the Xbox One, EA said only that it was one of the company’s three of five top-selling titles across all platforms in the Western World.

EA also said it posted record mobile revenue of almost $460 million for the fiscal year and that its mobile business reached more than 130 monthly active users in the year. In the fourth quarter, 143 million EA mobile games were downloaded.

The video game maker offered first fiscal quarter 2015 guidance of $700 million in non-GAAP revenue, well above the consensus estimate of $632.68 million, and adjusted EPS guidance for a loss of $0.05 per share, again well short of the consensus estimate for an EPS loss of $0.23. Full-year guidance for calls for EPS of $1.85 and full-year revenue of $4.1 billion. Full-year guidance is sharply above the consensus estimate of $1.52 for EPS, but slightly below the consensus revenue estimate of $4.11 billion.

Non-GAAP net revenue is expected to be approximately $275 million lower than GAAP net revenue due to the impact of the change in deferred net revenue (online-enabled games). A similar exclusion will add about $500 million to expected first-quarter GAAP net revenues.

Shares are up about 15% in after-hours trading at $32.30 above the current 52-week range of $18.05 to $30.56. Thomson Reuters had a consensus analyst price target of around $30.80 before today’s results were announced.

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