EA shares dip despite strong earnings and bookings outlook
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Electronic Arts (NASDAQ:EA) shares slipped by 1% Wednesday as Wall Street reacted positively to the videogame publisher's fourth-quarter results blowing past expectations and its upbeat business outlook.
Late Tuesday, EA (EA) said that for the period ending March 31, it earned $1.78 a share, excluding one-time items, on bookings of $1.95B, which topped analysts expectations for a profit of $1.34 a share, and bookings of $1.73B in the quarter ended March 31. Analysts polled by FactSet had expected EA (EA) to post earnings of $1.34 a share on sales of $1.75 billion.
EA's (EA) results were highlighted by its FIFA 23 franchise, which reported bookings growth of 31% from a year ago. The company said that in the six months since its release FIFA 23 has already surpassed the lifetime sales of FIFA 22. The FIFA 23 results are also notable in that the game will be the last in EA's (EA) relationship with FIFA after the company failed to strike a new licensing deal with the world soccer association.
Going forward, EA (EA) forecast first-quarter earnings, excluding one-time items, of 98 cents to $1.14 a share, with net bookings of $1.5B to $1.6B, and total revenue in a range of $1.825B to $1.925B.
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