Electronic Arts earnings increase thanks to digital sales
MANILA, Philippines – Video game maker Electronic Arts (EA) reported Tuesday, May 5, that its quarterly earnings exceeded forecasts due to digital sales, which have better margins and includes mobile games.
The company's guidance for the quarter and the full fiscal year, however, were short of analyst's projections.
In its release of financial results, EA said fiscal fourth quarter net income results increased to $395 million ($1.19 per share) from $367 million ($1.15 a share) in the previous year. The net revenue also increased from $1.123 billion to $1.185 billion.
Forbes reported that revenue in the quarter fell 2% to $896 million, yet still trumped analyst estimates of $850 million.
The Wall Street Journal added that the company's outlook did not meet up with Wall Street's expectations. "For the fiscal first quarter ending in June," The WSJ reported, "EA projected adjusted earnings would break even on revenue of about $640 million. Analysts, though, had penciled in profit of 19 cents on revenue of $775 million."
EA financial chief Blake Jorgensen told WSJ it attributed the divide to a thinner slate of games compared to the year previous. “Analysts didn’t have good idea as to when we were going to ship” specific games, he explained.
The full EA report can be found here. – Rappler.com