Electronic Arts Rises After Q1 Earnings Results (EA)

Video game publisher

released its fiscal first-quarter earnings results after the closing bell on Tuesday. The company reported an adjusted earnings per share loss that was less than consensus estimates and revenue also came in ahead of expectations. Electronic Arts also provided guidance for the fiscal second-quarter and an updated outlook for the full-year. In late trading, the stock was last up better than six percent to $25.30.

"EA had a solid quarter driven by continued digital growth and disciplined cost management,” said Executive Chairman Larry Probst. “We are also executing on a clear set of goals for leadership on mobile, PC, current and next generation consoles.” “EA delivered first quarter EPS above our guidance through a combination of revenue growth, phasing of expenses, and cost control,” said Chief Financial Officer Blake Jorgensen. “We are reaffirming our annual non-GAAP guidance of $4 billion net revenue and $1.20 earnings per share.”

EA reported first-quarter net income of $222 million or $0.71 per share, compared to $201 million or $0.63 per share, in last year's corresponding period. On an adjusted basis, the company lost $121 million or $0.40 per share, versus a loss of $130 million or $0.41 per share, a year ago. This came in ahead of Wall Street analysts' consensus EPS estimates calling for a loss of $0.60. Total revenue in the quarter fell to $949 million compared to $955 million last year. Adjusted revenue was $495 million from $491 million in last year's first-quarter. This came in ahead of consensus revenue estimates of $453.75 million.

Looking ahead to the second-quarter, EA guided for a net loss of $1.22 per share, adjusted earnings per share of approximately $0.12, and revenue of around $625 million. Adjusted revenue is expected to be about $975 million. Currently, analysts are modelling Q2 EPS of $0.15 on revenue of $975.93 million for the company's fiscal second-quarter. For the full-year, Electronic Arts said that it now expects a loss of roughly $0.98 per share compared to its previous guidance calling for a loss of $0.97. Adjusted EPS is expected to be $1.20. Revenue is expected to be about $3.50 billion with adjusted revenue of $4.00 billion. Currently, analysts expect that EA will report full-year EPS of $1.20 on sales of $4.00 billion.