Electronic Arts Inc. (NASDAQ: EA) released its fiscal second-quarter earnings report after the markets closed on Thursday. The company had $0.65 in earnings per share (EPS) on $1.15 billion in revenues, versus Thomson Reuters consensus estimates that call for $0.45 in EPS on $1.10 billion in revenue. The same period from the previous year had $0.73 in EPS on $1.22 billion in revenue.
Looking ahead to fiscal 2016, the company now expects EPS to be $3.00 and net revenues to be $4.5 billion, compared to consensus estimates of $2.96 in EPS on $4.53 billion in revenue. In terms of the fiscal third quarter the company expects $1.75 in EPS on $1.775 billion in net revenues versus the consensus estimates of $1.74 in EPS on $1.74 billion in revenue.
During the second fiscal quarter, EA repurchased 1.8 million shares for a total of $126 million.
On the books, cash, equivalents and short terms investments totaled $2.59 billion at the end of the fiscal second quarter compared to $3.02 billion at the end of March 2015.
Andrew Wilson, CEO of EA, commented on earnings:
It’s been a great quarter. Our EA SPORTS titles are connecting millions of passionate fans around the world to each other and the sports they love, we have new mobile experiences for our players, and deeply-engaged communities in our live services. With Star Wars Battlefront launching in less than three weeks, and a stunning new Need for Speed just days away, we’re excited for the holiday season and the remainder of the fiscal year for Electronic Arts.
Blake Jorgensen, CFO of EA, added:
Results exceeded our expectations again. Based on the ongoing strength of our business and reception of Star Wars Battlefront, we are raising our full-year outlook for the second time. Our markets are very healthy, the digital transition continues to drive margins, and engagement in our live services and excitement for our upcoming launches is exceptional.
Shares of EA closed Thursday down 0.9% at $76.06, with a consensus analyst price target of $79.35 and a 52-week trading range of $38.52 to $76.92. Following the release of the earnings report, shares were down 2.6% at $74.12 in the after-hours trading session.