Electronic Arts Earnings: Here’s Why Investors are Happy Now
Electronic Arts Inc. (NASDAQ:EA) had a loss and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 6.1%.
Electronic Arts Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased to $-0.4 in the quarter versus EPS of $-0.41 in the year-earlier quarter.
Revenue: Decreased 48.17% to $495 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Electronic Arts Inc. reported adjusted EPS loss of $0.4 per share. By that measure, the company beat the mean analyst estimate of $-0.6. It beat the average revenue estimate of $453.75 million.
Quoting Management: “EA had a solid quarter driven by continued digital growth and disciplined cost management,” said Executive Chairman Larry Probst. “We are also executing on a clear set of goals for leadership on mobile, PC, current and next generation consoles.
Key Stats (on next page)…
Revenue decreased 59.06% from $1.21 billion in the previous quarter. EPS decreased to $-0.4 in the quarter versus EPS of $0.55 in the previous quarter.
Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.13 to a profit $0.15. For the current year, the average estimate has moved up from a profit of $1.11 to a profit of $1.2 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)