Electronic Arts Tops Q4 Expectations, Shares Surge

Shares of

jumped over 3 percent in after-hours trading after the company reported stronger-than-expected fiscal fourth-quarter results. The Redwood City, California-based company posted quarterly net earnings of $395 million, or $1.19 per share, versus $367 million, or $1.15 per share, in the year-ago period. Excluding non-recurring times, the company's adjusted earnings came in at $0.39 per share Its total revenue climbed to $1.185 billion from $1.123 billion, while non-GAAP revenue came in at $896 million. However, analysts were expecting earnings of $0.25 per share on revenue of $850.23 million. The average estimate among 25 Estimize users was for earnings of $0.29 per share and revenue of $852.01 million. During the quarter, the company repurchased 1.8 million shares for $95 million. For fiscal 2016, Electronic Arts projects adjusted earnings of $2.75 per share on adjusted revenue of $4.4 billion. Analysts had expected earnings of $2.64 per share on revenue of $4.48 billion. The company expects Q1 adjusted earnings of $0.00 per share on adjusted sales of $640 million. The company announced a new $1 billion stock buyback program. EA shares gained 3.87 percent to $61.45 in after-hours trading.