Electronic Arts Inc. (NASDAQ: EA) shares dropped on Thursday after the company announced that it would be updating its outlook as well as its “Battlefield V” launch date. The shares were briefly halted in the premarket session as well. Much of the updated business outlook has to do with the “Battlefield V” launch.
Essentially, the company is moving the launch of “Battlefield V” out by four weeks, but this will push some net bookings out of fiscal year 2019 and into fiscal 2020.
EA is updating fiscal year 2019 net bookings guidance from $5.55 billion to $5.20 billion. About $115 million of this change is driven by the movement in foreign exchange rates.
Management has said that the company is currently evaluating the impact that these developments will have on EA’s fiscal year GAAP guidance and quarterly phasing of net bookings, and it will provide that information on EA’s next earnings call in October.
Blake Jorgensen, chief operating officer and chief financial officer, commented:
We’re updating our fiscal year guidance to reflect the updated launch date for Battlefield V, the ongoing impact of foreign exchange rate changes, and our current outlook for our mobile business. Our core businesses, including FIFA Ultimate Team, are strong, we think our players are going to love Battlefield V, and excitement is building for our new IP, Anthem.
Shares of Electronic Arts were last seen down about 7% at $119.41, with a consensus analyst price target of $154.56 and a 52-week range of $99.63 to $151.26.