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.

Market News and Data brought to you by Benzinga APIs
Comments
Loading...
Date
ticker
name
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: EarningsNewsPrice TargetAnalyst RatingsMoversAndrew Wilsonwhy it's moving
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

Loading...