Electronic Arts Falls 2% After Q3 Beat, Revenue Miss
Electronic Arts (NASDAQ: EA) is down more than two percent in after hours trading after the company released its third quarter results.
The video game publisher initially plummeted more than five percent after the company reported a Q3 EPS of $1.26 versus the Street estimate of $1.23.
Earnings per share were up 121 percent from the year-ago period.
Revenue arrived at $808 million versus the Street estimate of $820 million. Sales were down 32 percent year-over-year.
In the official release, CFO Blake Jorgensen said that EA delivered EPS results that were above the company's own guidance. He believes that this was driven by "strong sales" of next-generation console titles on PlayStation 4 and Xbox One. Jorgensen also said that EA was the number-one publisher of next-gen console games during the month of December.
On the downside, EA lowered its non-GAAP net revenue guidance to $3.91 billion "due to the weakness in current generation software."
At the same time, the publisher increased its non-GAAP EPS guidance to $1.30 "due to the improvement in our operating profits."
For the fourth quarter, EA expects to report an EPS of $0.09 versus the Street estimate of $0.10.
Electronic Arts is actually one of the year's few success stories, rising more than seven percent year-to-date (as of market close on Monday, January 27). The company performed quite well 2013, rising more than 62 percent over the last 12 months.
Disclosure: At the time of this writing, Louis Bedigian had no position in the equities mentioned in this report.
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