Electronic Arts Stock Is Tumbling: What's Going On?

Electronic Arts Inc EA shares are trading lower Wednesday after the company reported fiscal third-quarter financial results and issued cautious guidance. The video game company also said it will delay the release of the upcoming "Star Wars" game.

What Happened: Electronic Arts reported third-quarter net revenue of $1.881 billion, up from $1.789 billion year-over-year. Net bookings for the trailing twelve months came in at $7.146 billion, down 1% year-over-year. 

"While our teams delivered for our players, the current macro environment impacted Q3 results. As we navigate the short-term, we're focused on building for the long-term and remain confident about our future," said Andrew Wilson, CEO of Electronic Arts.

Electronic Arts expects fiscal fourth-quarter net revenue to be between $1.7 billion and $1.8 billion. The company sees fourth-quarter earnings in a range of 5 cents to 20 cents per share. Net bookings are expected to be between $1.675 billion and $1.775 billion.

Full-year net revenue is expected to be between $7.252 billion and $7.352 billion. Full-year earnings are expected to be between $2.97 and $3.11 per share.

Electronic Arts also delayed the release date for "Star Wars Jedi: Survivor" to April 28. 

Related Link: Electronic Arts Q3 Earnings Highlights: Shares Fall On Cautious Guidance, But This Game Is Hitting Record Engagement

Analyst Assessment: Several analysts cut price targets on the stock following the company's quarterly results.

  • Keybanc analyst Tyler Parker maintained EA with an Overweight and lowered the price target from $155 to $138.
  • Credit Suisse analyst Stephen Ju maintained EA with an Outperform and lowered the price target from $154 to $132.
  • Raymond James analyst Andrew Marok maintained EA with an Outperform and lowered the price target from $150 to $135.
  • Barclays analyst Mario Lu maintained EA with an Equal-Weight and lowered the price target from $132 to $118.
  • Wedbush analyst Nick McKay maintained EA with an Outperform and lowered the price target from $164 to $139.

EA Price Action: Electronic Arts has a 52-week high of $142.79 and a 52-week low of $109.24.

The stock was down 9.12% at $116.94 at the time of writing, according to Benzinga Pro.

Photo: Stefans02 from Flickr.

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