NEW YORK (
is taking a severe beating this morning, after the company reported disappointing quarterly earnings results and projections, in yet one more example of the recent struggles of the game industry.
Electronic Arts stock has plummeted 9.2% to $15.89 in midday trading Tuesday.
Electronic Arts is forecasting non-GAAP earnings a share of about 50 cents to 70 cents a share for fiscal year 2011. Wall Street consensus estimates put the figure at 74 cents.
The company says that the sales of disc-based games sold at the retail level could fall 3% in 2010.
Electronic Arts on Monday reported third-quarter revenue of $1.2 billion, down 25%. Electronic Arts managed to narrow its net loss to $82 million, or 25 cents a share, compared with $641 million, or $2 a share a year ago. Non-GAAP net income was $109 million, or 33 cents a share, compared with a non-GAAP net income of $179 million, or 56 cents a share, a year ago.
Analysts surveyed by Thomson Reuters had expected earnings of 31 cents a share.
Related stocks are trading in mixed territory.
has slipped 0.2% to $10.10 and
Take-Two Interactive Software
has added 0.9% at $9.50. Meanwhile,
is rising by 1.2% to $5.70.
-- Reported by Andrea Tse in New York
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