- Video game publisher Electronic Arts (EA) has reported a miss on Wall Street’s targets for its fiscal fourth quarter, leading to a drop in EA stock in extended trading.
- The company’s earnings declined 23% year-over-year, with net bookings dropping 14%.
- EA’s outlook for the current quarter and year ahead is also softer than expected, further impacting the stock’s performance.
Electronic Arts (EA) reports lower than expected earnings for the fiscal fourth quarter, leading to a drop in stock value. The company’s outlook for the current quarter and year ahead is also softer than expected.
EA’s Fiscal Fourth Quarter Performance
The Redwood City, Calif.-based company earned an adjusted $1.37 a share on net bookings of $1.67 billion in the quarter ended March 31. Analysts polled by FactSet had expected EA earnings of $1.52 a share on adjusted sales of $1.78 billion. On a year-over-year basis, EA earnings declined 23% while net bookings dropped 14%.
EA’s Outlook for the Current Quarter and Year Ahead
For its fiscal first quarter ending June 30, EA expects to earn an adjusted 40 cents a share on net bookings of $1.2 billion. That’s based on the midpoint of its guidance. Wall Street had been looking for adjusted earnings of 79 cents a share on net bookings of $1.44 billion. For its full fiscal year 2025, EA predicted adjusted earnings of $5.58 a share on net bookings of $7.5 billion. Analysts were looking for adjusted earnings of $7.60 a share on net bookings of $7.74 billion in fiscal 2025. In the just-finished fiscal 2024, EA earned an adjusted $5.18 a share on net bookings of $7.43 billion.
EA Stock Drops After Report
In after-hours trading on the stock market today, EA stock fell 3.3% to 126. During the regular session Tuesday, EA stock slid 0.3% to close at 130.24. The company’s board authorized a new stock repurchase program of $5 billion over three years.
Conclusion
EA’s fiscal fourth quarter results and softer outlook for the current quarter and year ahead have led to a drop in the company’s stock value. The company’s earnings declined 23% year-over-year, with net bookings dropping 14%. EA expects to earn an adjusted 40 cents a share on net bookings of $1.2 billion for its fiscal first quarter ending June 30, lower than Wall Street’s expectations. For its full fiscal year 2025, EA predicted adjusted earnings of $5.58 a share on net bookings of $7.5 billion, again lower than analysts’ expectations.
