Updated from July 22Shares of Electronic Arts ( ERTS) were down nearly 8% Friday after the company issued somewhat disappointing guidance and an analyst warned of market share losses. In a note issued on Friday, Wedbush Morgan analyst Michael Pachter observed that the company declined to raise the top end of its full-year guidance. The company also expects to post little to no revenue growth in the holiday quarter, he noted. A number of potential blockbuster titles will be competing for market share in the fourth quarter, including games such as Take Two's ( TTWO) Grand Theft Auto: San Andreas, Microsoft's ( MSFT) Halo 2 and Doom3 from Activision ( ATVI). "We believe that the company expects to feel the effects of competition from
Analysts were looking for earnings of 5 cents a share in the quarter on $420.86 million in sales. In April, EA
predicted that its bottom line would range from break even to 5 cents a share in profits on sales of between $390 million to $430 million. EA provided an earnings outlook that was roughly in line with estimates and guided revenue higher. The company now expects to earn 28 cents to 34 cents a share in its fiscal second quarter on sales ranging from $680 million to $715 million. For the full year, EA projected earnings of between $2 to $2.10 a share on sales ranging from $3.3 to $3.4 billion. In EA's second quarter, Wall Street has projected earnings of 31 cents a share -- 32 cents a share excluding charges -- on sales of $629.04 million. For the full year, analysts are looking for profits of $2.05 a share -- on both a GAAP and pro-forma basis -- on sales of $3.34 billion.