Electronic Arts stocks falls 10% after earnings miss
Electronic Arts Inc. shares plunged roughly 10% in the extended session Tuesday after the company missed sales and earnings expectations. The company reported fiscal third-quarter net income of $262 million, or 86 cents a share, compared with losses of $186 million, or 60 cents a share, in the year-ago period. Revenue rose to $1.29 billion from $1.16 billion in the year-ago period; EA reported net bookings fell to $1.61 billion from $1.97 billion in the year-ago period. Many videogame makers use net bookings instead of revenue because it accounts for online-enabled games. Analysts surveyed by FactSet had estimated adjusted earnings of $1.94 a share on sales of $1.75 billion. Analysts expected net bookings of $1.76 billion in the fiscal third quarter. For the fiscal fourth quarter, analysts model adjusted earnings of $1.58 a share on revenue of $1.48 billion. EA said that it expects fiscal fourth-quarter earnings of 56 cents a share on sales of $1.16 billion. EA said it expects net bookings of $1.17 billion in the fiscal fourth-quarter. EA stock has fallen 24% in the past year, with the S&P 500 index rising 2.8%. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.