Video game publisher Electronic Arts late Tuesday missed Wall Street's targets for its fiscal fourth quarter and gave a soft outlook for the current quarter and year ahead. EA stock fell in extended trading.
The Redwood City, Calif.-based company earned an adjusted $1.37 a share on net bookings of $1.67 billion in the quarter ended March 31. Analysts polled by FactSet had expected EA earnings of $1.52 a share on adjusted sales of $1.78 billion. On a year-over-year basis, EA earnings declined 23% while net bookings dropped 14%.
For its fiscal first quarter ending June 30, EA expects to earn an adjusted 40 cents a share on net bookings of $1.2 billion. That's based on the midpoint of its guidance. Wall Street had been looking for adjusted earnings of 79 cents a share on net bookings of $1.44 billion.
For its full fiscal year 2025, EA predicted adjusted earnings of $5.58 a share on net bookings of $7.5 billion. Analysts were looking for adjusted earnings of $7.60 a share on net bookings of $7.74 billion in fiscal 2025. In the just-finished fiscal 2024, EA earned an adjusted $5.18 a share on net bookings of $7.43 billion.
EA Stock Drops After Report
In after-hours trading on the stock market today, EA stock fell 3.3% to 126. During the regular session Tuesday, EA stock slid 0.3% to close at 130.24.
"EA's fiscal 2024 was highlighted by record cash flow and strong earnings growth driven by EA Sports FC and Madden NFL," Chief Financial Officer Stuart Canfield said in a news release.
He added, "With strong conviction in our future, we are announcing an expanded stock repurchase program. We look forward to sharing more about our long-term strategy and financial framework at our Investor Day this fall."
The company's board authorized a new stock repurchase program of $5 billion over three years.
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