EA Shares Slump on Weak Profit Forecast
REDWOOD CITY, Calif. ( TheStreet) -- Electronic Arts (ERTS) saw its stock fall in after-hours trading Monday after posting a much narrower loss but predicting fourth-quarter earnings would fall short of analysts' estimates.
Electronic Arts, the maker of video game titles such as the "Madden" series, reported a third-quarter loss of $82 million, or 25 cents a share, compared with a year-earlier loss of $641 million, or $2 a share. On an adjusted basis, the company earned 33 cents a share in the quarter, lower than a year earlier but above analysts' estimates.
Electronic Arts said third-quarter revenue fell to $1.24 billion from $1.65 billion because of fewer titles this holiday quarter vs. the same period in 2008 and a weak overall packaged goods sector in Europe.
For the fourth quarter, Electronic Arts said it expects adjusted earnings of 2 cents to 6 cents a share on revenue of about $800 million to $850 million. Prior to the company issuing its press release, analysts polled by Thomson Reuters expected fourth-quarter earnings of 13 cents a share on sales of $851 million.Electronic Arts' shares fell 8.3%, or $1.45, to $16.04 in after-hours trading Monday, after rising 1.3% in the regular session. -- Reported by Joseph Woelfel in New York. Follow TheStreet.com on Twitter and become a fan on Facebook.
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