NEW YORK (TheStreet) -- Electronic Arts (EA) surged Wednesday after the company substantially beat Wall Street's fourth-quarter earnings estimates and announced a $1 billion stock buyback plan. Groupon (GRPN) plummeted after issuing a 2015 forecast below analysts expectations. Frontier Communications (FTR) plunged by double digits after missing its first quarter estimates.
Electronic Arts soared 3% to close at $60.93 on a day when the broader markets retreated.
The game developer jumped after reporting strong fourth-quarter results after the markets closed Tuesday, in which it posted adjusted earnings of 39 cents a share on revenue of $896 million. Wall Street was expecting earnings of 25 cents a share on revenue of $850.2 million.
EA, along with announcing a $1 billion stock repurchase plan, also said its full-year 2016 should yield earnings of $2.75 a share on revenue of $4.4 billion. Analysts, according to a 24/7 Wall Street report, were expecting earnings of $2.64 a share on revenue of $4.48 billion.
Credit Suisse issued a favorable report, according to 24/7, in which the analyst noted the key "takeway" from EA's quarter were indications the company is making its transition to digital games.
Groupon plunged 7.6% to end the session at $6.32.
The online daily deal site tanked after issuing a lower-than-expected 2015 revenue forecast after the markets closed Tuesday. Groupon expects it will post revenue between $3.15 billion and $3.3 billion for the year, compared with the $3.5 billion that analysts had expected.
The company attributed its lower than expected 2015 results to a strong dollar and expectations of fewer billings than anticipated, according to a Reuters report. Groupon's CEO Eric Lefkofsky told Reuters the company would evaluate its long-term strategy where it operates in various countries, similar to what it did in Korea. Groupon's CEO also plans to work towards always having deals to offer users in the top categories that it carries.