NEW YORK (TheStreet) -- Electronic Arts (EA) - Get Report stock is declining 7.59% to $64.49 in after-hours trading on Thursday after the video game maker issued lower than expected fiscal 2016 fourth quarter guidance.
The company expects to deliver earnings of 40 cents per share on revenue of $875 million for the quarter ending March 31. Wall Street estimates earnings of 50 cents per share on $915.41 million.
After the market close this afternoon, Electronic Arts posted fiscal 2016 third quarter earnings that surpassed expectations and revenue that missed estimates.
The Redwood City, CA-based company reported earnings of $1.83 per share for the quarter ended December 31, beating estimates by 2 cents.
Revenue increased 26% year-over-year to $1.8 billion, but fell short of estimates of $1.81 billion.
Revenue growth was driven by titles for Xbox One (MSFT) and PlayStation 4 (SNE), as well as PC and mobile games.
Sales of "Star Wars Battlefront" exceeded the company's fiscal 2016 full year guidance of 13 million units.
Separately, Electronic Arts has a "buy" rating and a letter grade of B- at TheStreet Ratings because of the company's solid stock price performance, largely solid financial position, notable return on equity and expanding profit margins.
You can view the full analysis from the report here: EA
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.