Electronic Arts Inc. Earnings Cheat Sheet: Beats Expectations

S&P 500 (NYSE:SPY) component Electronic Arts Inc. (NASDAQ:ERTS) reported net income above Wall Street’s expectations for the first quarter. Electronic Arts Inc. develops and distributes video game software and content across a variety of platforms.

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Electronic Arts Earnings Cheat Sheet for the First Quarter

Results: Net income for the multimedia and graphics software company rose to $221 million (66 cents per share) vs. $96 million (29 cents per share) in the same quarter a year earlier. This is a more than twofold rise from the year earlier quarter.

Revenue: Rose 22.6% to $999 million from the year earlier quarter.

Actual vs. Wall St. Expectations: ERTS reported an adjusted net loss of 37 cents per share. By that measure, the company beat the mean analyst estimate of a loss of 45 cents per share. It beat the average revenue estimate of $502.9 million.

Quoting Management: “EA is well positioned for the year ahead and reaffirms its fiscal 2012 non-GAAP EPS guidance,” said Eric Brown, Chief Financial Officer. “And we are increasing non-GAAP digital revenue guidance to a range of $1.100 billion to $1.150 billion for fiscal 2012.”

Key Stats:

From the fourth quarter of the last fiscal year, the company’s current liabilities fell to $1.23 billion from $2 billion.

The company beat estimates last quarter after being in line with expectations in the fourth quarter of the last fiscal year with net income of 13 cents per share.

The company’s revenue has now risen for two straight quarters. In the fourth quarter of the last fiscal year, revenue increased 11.3% to $1.09 billion from the year earlier quarter.

Gross margins grew 3.2 percentage points to 76%. The growth seemed to be driven by increased revenue, as the figure rose 22.6% from the year earlier quarter while costs rose 8.1%.

Competitors to Watch: Activision Blizzard, Inc. (NASDAQ:ATVI), THQ Inc. (NASDAQ:THQI), Take-Two Interactive Software, Inc. (NASDAQ:TTWO), Microsoft Corporation (NASDAQ:MSFT), KONAMI CORPORATION (NYSE:KNM), Majesco Entertainment Co. (NASDAQ:COOL), Sony Corporation (NYSE:SNE), The Walt Disney Company (NYSE:DIS), and Glu Mobile Inc. (NASDAQ:GLUU).

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(Source: Xignite Financials)

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