Electronic Arts Slides Despite Q2 Earnings Beat
Electronic Arts Inc. (NASDAQ: EA) released its fiscal second-quarter earnings report after the markets closed on Tuesday. The firm posted $0.83 in earnings per share (EPS) and $1.29 billion in revenue. Thomson Reuters has consensus estimates that are calling for $0.58 in EPS and $1.18 billion in revenue. The same period from last year had $0.62 in EPS and $1.18 billion in revenue.
During the quarter, digital net bookings for the trailing twelve months was a record $3.608 billion, up 11% year-over-year and represents 69% of total net bookings.
Looking ahead to the fiscal third quarter, EA expects to see EPS of $0.61 and revenue of $1.375 billion. Consensus estimates are calling for $2.42 in EPS and $2.0 billion in revenue for the coming quarter.
Andrew Wilson, CEO, commented:
It was a strong second quarter, as we entertained players with four high-quality new EA SPORTS games, hundreds of content updates in our live services, and esports programs that reached record viewership. We’re incredibly excited to bring innovative new games like Battlefield V and Command & Conquer: Rivals to our players this holiday season, and launch our breakthrough new IP Anthem in February. We’re set to deliver some amazing new ways to play and compete through the rest of this fiscal year and beyond.
Shares of EA closed Tuesday at $94.83, with a consensus analyst price target of $139.29 and a 52-week range of $89.12 to $151.26. Following the announcement, the stock was initially down about 3% at $91.77 in the after-hours session.