Electronic Arts Soars on Revenue Beat and Disney Deal

Electronic Arts (NASDAQ:EA) stock closed the regular session up 0.66 percent and surged as much as 8.85 percent in post-market trading following its fiscal fourth-quarter earnings report. Revenue decreased by 23.98 percent on the year to $1.04 billion, meeting the average analyst expectation. Adjusted earnings increased 223.5 percent to $0.55 per share, missing the average estimate of $0.58 per share.

EA Adjusted Revenue and Earnings

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EA provided the following set of expectations for fiscal 2014:

  • GAAP net revenue is expected to be approximately $3.50 billion.
  • Non-GAAP net revenue is expected to be approximately $4.00 billion.
  • GAAP diluted loss per share is expected to be approximately ($0.97).
  • Non-GAAP diluted earnings per share is expected to be approximately $1.20.

EA provided the following set of expectations for the first quarter of fiscal 2014:

  • GAAP net revenue is expected to be approximately $875 million.
  • Non-GAAP net revenue is expected to be approximately $450 million.
  • GAAP diluted earnings per share is expected to be approximately $0.33.
  • Non-GAAP diluted loss per share is expected to be approximately ($0.62).

The game publisher announced on Monday that it has signed a multi-year exclusive licensing agreement to develop and published new games based on the Star Wars franchise. EA commented: “Under the agreement, EA will develop and publish new Star Wars titles for a core gaming audience, spanning all interactive platforms and the most popular game genres, while Disney will retain certain rights to develop new titles within the mobile, social, tablet and online game categories.”

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Electronic Arts Inc. Stock Chart - EA Interactive Chart - Yahoo! Finance

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