EA Beats on Both Lines

Updated from 5:10 p.m. EST

A difficult transition toward a new generation of video game console systems took its toll on Electronic Arts'(ERTS Quote - Cramer on ERTS - Stock Picks) third-quarter profit, but the company exceeded analysts' expectations.

Electronic Arts' better-than-expected results were helped by the strong performance of four game titles, as well as increased revenue from online and mobile games.

However, the contributions weren't enough to keep the Redwood City, Calif.-based video game publisher from guiding revenue lower for the fourth quarter.

EA said Thursday that net income fell nearly 38% for the quarter to $160 million, or 50 cents a share, from $259 million, or 83 cents a share, a year ago.

Excluding stock-based compensation charges and other items, such as an after-tax stock-based compensation charge of $28 million, the company earned $201 million, or 63 cents a share, compared with $268 million, or 86 cents a share, in the prior year's quarter.

On that basis, it beat Thomson First Call estimates of $57 cents a share.

Revenue was $1.28 billion, up 1% compared with $1.27 billion for the prior year. The consensus analyst estimate called for roughly $1.27 billion.

Shares of EA were up nearly 6% to $53.55 in recent after-hours trading.

Sales were driven by Need for Speed: Carbon, FIFA 07, The Sims 2 Pets and Madden NFL 07, with each game selling over 3 million copies in the quarter, said the company.

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