Electronic Arts Shares Higher After Q4 Sales Beat

Electronic Arts Inc. EA shares are trading higher after reporting a fourth-quarter sales beat.

Earnings came in at 69 cents per share, which does not compare to the 96-cent per share estimate. Sales came in at $1.238 billion, beating estimates by $38 million. The company sees 2020 sales of ~$5.375 billion and EPS of ~$8.56.

"FY20 will be a year of continued growth for our industry, and we're excited to bring more great entertainment to the expanding audience around the world," said CEO Andrew Wilson. "Players are engaging with games in more ways than ever before. We're committed to meeting them where they are with a broad portfolio of amazing new games and live services, choice of engagement models including free-to-play and subscriptions, and new opportunities to play, compete and watch."

"We ended our fiscal year with strong growth, driven by our live services business which continued to provide a very large, stable and profitable source of net bookings," said COO and CFO Blake Jorgensen. "Looking ahead, we will bring games to an extraordinary variety of players in fiscal 2020 and deliver on our commitment to players with deep live services content for Ultimate Team, Apex Legends, The Sims 4, Anthem and Battlefield V."

Highlights

• 3.2 million shares repurchased
• Net cash from operating activities was $599 million
• Two new original IP titles, "Apex Legends" and "Anthem," launched

At time of publication, Electronic Arts traded higher by 3.2 percent at $95.77 per share. The stock closed at $92.73.

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