Electronic Arts dips as it cuts bookings forecasts
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Electronic Arts (NASDAQ:EA) is 1.8% lower after hours following fiscal second-quarter earnings where it beat profit expectations but trimmed its full-year expectations for bookings and profitability, warning of a negative hit from foreign exchange effects.
"The U.S. dollar has strengthened since the time of our initial FY23 guidance," the company says in expecting a $200M negative impact on full-year bookings. It cut that view to $7.65B-$7.85B, down from a prior forecast of $7.9B-$8.1B.
That forecast now marks 2-4% year-over-year growth, but it would be 6-9% in constant currency, EA notes.
Bookings guidance also looks light for the holiday quarter, where it expects that metric to come in at $2.425B-$2.525B vs. expectations of $2.6B.
Digging in, net bookings in "live services and other" for the trailing 12 months rose 7%, and make up 73% of the total.
Net cash used in operations was $112M; net cash provided by operations for the trailing 12 months was $1.788B.
âIn Q2, EA delivered strong engagement and deeply immersive experiences across our portfolio, with new EA SPORTS titles and multi-platform live services powering the business,â says CEO Andrew Wilson.
Conference call to come at 5 p.m. ET.
Electronic Arts is entering the holiday quarter preparing to face off with Call of Duty: Modern Warfare II after EA took the top two game sales spots in September, with FIFA 23 and Madden NFL 23.