Electronic Arts Beats Wall Street Earnings Estimates; Cuts Full-Year Outlook

Video-game publisher Electronic Arts EA released its fiscal second-quarter results on Tuesday afternoon. The company reported non-GAAP net income of $49 million or $0.15 per share, compared to $17 million or $0.05 per share, in the year ago period. This easily beat Wall Street analysts' consensus EPS estimates of $0.11. Revenues in the quarter were $1.08 billion versus $1.03 billion last year. This was in-line with Street consensus revenue estimates. Looking ahead to Q3, the company said that it expects non-GAAP earnings per share of $0.50 to $0.60 on revenues of $1.25 billion to $1.35 billion. This is below current consensus calling for EPS of $0.71 on revenues of $1.39 billion. For the full-year, the company lowered its guidance. Electronic Arts now expects non-GAAP earnings per share of $1.00 to $1.15 on revenues of $4.05 billion to $4.20 billion. Previously, non-GAAP earnings per share were expected to be between $1.05 to $1.20 on revenues of $4.10 billion to $4.25 billion. Currently, analysts expect the company to report full-year EPS of $1.05 on revenues of $4.13 billion.