EA beats Estimates And Turns A Profit
Since new CEO Andrew Wilson has taken over EA has gone strength to strength and as such its managed to raise its profitability.
EA has seen a turnaround in recent quarters, as have other video game companies that have invested heavily in next-generation consoles such as Activision Blizzard, Take-Two Interactive, and Square Enix. EA raised its full-year earnings and revenue outlook as a result of its more optimistic outlook.
The change in outlook reflects “excitement for upcoming titles including Star Wars Battlefront,” Wilson said.
Electronic Arts beat Wall Street estimates handily in its latest quarter, the three month period ended September 30, 2015.
Revenue was $1.14 billion for the period, against the company’s guidance of $1.08 billion; analyst estimates averaged $1.1 billion. The company posted net income of $212 million for the quarter.
Earnings per share beat the analyst estimates: 65 cents vs. an estimate of 45 cents, which usually makes Wall Street happy — yet the company’s stock was slightly down in after-hours trading, as of this writing.
That may be because EA’s packaged and digital revenue both fell slightly year-on-year, when looking at GAAP numbers: digital was $502 million, as compared to $508 million a year prior; packaged games sunk to $313 million, compared to $482 million a year ago.
Still, the company is raising its full-year outlook to $4.5 billion — up $50 million from its prior estimate, with titles like Star Wars Battlefront and a new Need For Speed close to release.
The company said it is so far the number one publisher on Xbox One and PlayStation 4 in 2015, thanks chiefly to the popularity of its latest Madden and FIFA titles.
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