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Electronic Arts stock falters on mixed results, outlook and FIFA rebranding

Electronic Arts Inc. shares traded between slight gains and losses in Tuesday’s extended session after the video game publisher reported a mix of hits and misses in both its earnings and outlook.

EA EA,
-0.39%
Stocks, which were down just over 1% after the close, were last up nearly 2% in the extended session. This was followed by a 0.4% drop in the regular session to close at $111.60.

Hours before his earnings report, The confirmed EA on Tuesday reports that it rebranded its flagship franchise, its FIFA football game, after negotiations with football’s world governing body, the Federation Internationale de Football Association, ended without an agreement to continue the nearly 30-year partnership. EA said its FIFA game has more than 150 million active accounts.

The company, known for its sports franchises like Madden NFL and action titles like Apex Legends and Battlefield 2042, reported third-quarter net income of $225 million, or 80 cents a share, compared with $76 million. or 26 cents a share in the prior-year period.

Read: The video game pandemic boom is expected to disappear in 2022

Revenue increased to $1.83 billion from $1.35 billion in the year-ago quarter. Bookings, which account for delayed revenue, hit $7.52 billion over the trailing 12 months, the company said. Net bookings for the quarter were $1.75 billion compared to $1.49 billion in the same quarter last year.

Analysts polled by FactSet had forecast earnings of 66 cents a share on sales of $1.78 billion and net bookings of $1.77 billion. Last quarter, EA forecast earnings of 46 cents a share on revenue of $1.76 billion, with net bookings also hitting $1.76 billion.

EA forecasts earnings of 76 to 85 cents a share on sales of $1.68 to 1.73 billion, with first quarter net bookings of $1.2 to $1.25 billion and earnings of 2 $.79 to $2.87 per share on sales of $7.6 to $7.8 billion and net bookings of $7.9 to $8.1 billion for the year.

Analysts are expecting first-quarter earnings of 68 cents a share on sales of $1.44 billion and bookings of $1.43 billion; and $4.41 per share, revenue of $7.85 billion and bookings of $8.03 billion for the year.

https://www.marketwatch.com/story/electronic-arts-stock-ticks-lower-following-mixed-results-outlook-11652213926?rss=1&siteid=rss Electronic Arts stock falters on mixed results, outlook and FIFA rebranding

Brian Lowry

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