Electronic Arts Posts Upbeat Q2 Earnings, Lifts Full-Year Outlook

Electronic Arts Inc. EA reported better-than-expected earnings for its fiscal second quarter and lifted its full-year outlook. Electronic Arts now expects full-year adjusted profit of $3.00 per share, versus earlier forecast of $2.85 per share. It now projects adjusted revenue of $4.50 billion, compared to prior guidance of $4.45 billion. For the third quarter, EA expects adjusted profit of $1.75 per share on adjusted revenue of around $1.78 billion. Analysts projected earnings of $1.74 per share on revenue of $1.74 billion. The Redwood City, California-based company reported a quarterly net loss of $140 million, or $0.45 per share, versus a year-ago profit of $3 million, or $0.01 per share. Excluding items, EA earned $0.65 per share. Its GAAP revenue slipped 18 percent to $815 million, while adjusted revenue slipped 6.1 percent to $1.15 billion. However, analysts were expecting earnings of $0.45 per share on revenue of $1.10 billion. The average estimate among 85 Estimize users was for earnings of $0.49 per share on revenue of $1.11 billion. During the quarter, EA repurchased 1.8 million shares for $126 million. "It's been a great quarter. Our EA SPORTS titles are connecting millions of passionate fans around the world to each other and the sports they love, we have new mobile experiences for our players, and deeply-engaged communities in our live services," said Chief Executive Officer Andrew Wilson. "With Star Wars Battlefront launching in less than three weeks, and a stunning new Need for Speed just days away, we're excited for the holiday season and the remainder of the fiscal year for Electronic Arts." EA shares fell 1.59 percent to $74.85 in the after-hours trading session.