Electronic Arts Cuts Guidance
Electronic Arts (ERTS) lowered its estimates for the fiscal year ending March 31, primarily because of lower-than-expected sales in North America and Europe.
The company's stock fell to $58.35 in late trading; it closed the regular session at $66.35. Other video-game software makers, such as Activision (ATVI), Take-Two Interactive (TTWO) and THQ (THQI), slipped in sympathy.
EA said after the bell Monday that it now expects revenue of $3.1 billion to $3.125 billion with earnings of $1.62 to $1.64 a share, and earnings before items of $1.70 and $1.72 a share.
The company had previously expected revenue of $3.275 billion to $3.325 billion and earnings of $1.82 to $1.87 a share and earnings before items of $1.90 to $1.95.A Thomson First Call survey of analysts had expected the company to earn $1.93 a share before items on revenue of $3.3 billion. "These results are clearly disappointing," said Larry Probst, chairman and CEO. "While our new releases are performing reasonably well, they have not been able to offset a significant falloff in catalog sales."
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV