Shares of Electronic Arts (EA) - Get Report rose 5.3% to $93.28 Wednesday after the videogame maker beat Wall Street's first-quarter revenue expectations.

 The Redwood City, California-based company reported first-quarter net income of $1.42 billion, or $4.75 a share, compared with $293 million, or 95 cents a share, a year ago. Revenue totaled $1.21 billion, up from $1.14 billion a year ago. Analysts were looking for revenue of $719 million.

EA will recognize a $1.7 billion tax benefit, or $5.61 a share, during fiscal 2020 due to a decision by the Ninth Circuit Court of Appeals in Altera Corp. v. Commissioner regarding stock-based compensation expenses; referendum altering Swiss tax rates; and EA's transfer of some of its intellectual property rights to its Swiss subsidiary, where EA's international business is headquartered.

The company recognized $1.08 billion in the first quarter and the remaining $620 million will be recognized after the referendum altering Swiss tax rates is enacted.

EA reported net bookings of $743 million, compared with $749 million in the year-ago period. Net bookings are the net amount of products and services sold digitally or sold-in physically in the period. 

Blake Jorgensen, chief financial officer and chief operating officer, said during a conference call with analysts that net bookings were "the key drivers of our business this quarter."

"It was $53 million above our guidance, driven by strength across the board with strong performance from our core franchises and live services," Jorgensen said.

For the second quarter, EA said it expects revenue of $1.32 billion and earnings of $2.60 per share, including a tax benefit of $2.08. 

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