Electronic Arts Reports Narrower Loss in Q3

Video game publisher Electronic Arts

released its fiscal third-quarter earnings results after the closing bell on Wednesday. Ahead of the report, the stock added a little less than 1 percent to close at $15.08. In the wake of the results, EA has given back more than 1 percent and was last trading at $14.90. The company reported a net loss of $45 million or $0.15 per share, compared to a loss of $205 million or $0.62 per share, in the year ago period. On a non-GAAP basis, net income fell to $176 million or $0.57 per share, compared to $334 million or $0.99 per share, in last year's corresponding quarter. This beat analysts' consensus EPS estimates of $0.56 by a penny. Total revenue in the quarter was down to $922 million from $1.06 billion last year. Non-GAAP net revenue was $1.18 billion from $1.65 billion in last year's third-quarter. This missed analysts' consensus revenue estimates of $1.29 billion. Looking ahead to the fourth-quarter, EA guided for non-GAAP earnings per share of $0.57 to $0.72 on revenue of $1.03 billion to $1.13 billion. Currently, analysts have consensus earnings estimates of $0.71 on revenue of $1.22 billion for the fiscal fourth-quarter. The company also updated its full-year guidance. Electronic Arts now sees non-GAAP earnings per share of $0.86 to $1.00 on revenue of $3.78 billion to $3.88 billion for fiscal 2013. This compares to current consensus earnings estimates of $1.01 per share on revenue of $4.07 billion. Previously, the company had guided for non-GAAP earnings per share of $1.00 to $1.15 on revenue of $4.05 billion to $4.20 billion for fiscal 2013.