Electronic Arts Soars on Guidance
Shares of video game maker Electronic Arts (NASDAQ: EA) surged by nearly nine percent during Tuesday's after-hours session after the company forecast full-year EPS of $1.20 on revenue of $4 billion. Analysts were expecting earnings of $1.10 per share on revenue of $4 billion.
"EA has a solid operating plan with disciplined R&D spending and a sharp focus on delivering the best games and services," said Chief Financial Officer Blake Jorgensen in a statement. "We are holding our FY 2014 operating expenses flat to the prior year – a significant achievement in a console transition year."
EA reported fiscal fourth-quarter earnings of 55 cents per share on a non-GAAP basis on revenue of $1.04 billion. Previous guidance was 57 cents to 72 cents a share on revenue of $1.025 to $1.125 billion.
Trailing twelve-month operating cash flow was $324 million, a $47 million improvement versus the prior year, EA said in the statement.
EA expects a first-quarter loss of 62 cents on revenue of $450 million. Analysts are expecting a loss of 37 cents a share on revenue of $532.48 million.
On Monday, EA and Dow component Walt Disney (NYSE: DIS) announced a multi-year licensing agreement where the video game maker will develop games based on the "Star Wars" movies. Disney bought the rights to the "Star Wars" franchise when it acquired George Lucas's Lucasfilm for $4.05 billion last October.
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.