Electronic Arts Earnings Beat, but Guidance Misses

Electronic Arts reported quarterly earnings Tuesday that beat Wall Street's estimates and revenue that hit the target but its guidance for the current quarter was much lower than expected.

Electronic Arts Earnings Beat, but Guidance Misses

The videogame maker reported a net loss of $381 million, or $1.21 per share, compared with $340 million, or $1.03 per share a year ago.

Excluding items, EA posted a profit of 15 cents per share, p from 5 cents a share in the year-earlier period.

Revenue increased to $1.08 billion from $1.03 billion a year ago.

Analysts had expected the company to report earnings excluding items of 11 cents a share on $1.08 billion in revenue, according to a consensus estimate from Thomson Reuters.

For the full year, EA said it expects earnings to be between $1.00 and $1.15. This range's midpoint is above the consensus estimate of $1.05 a share. It expects revenue of $4.05 billion to $4.2 billion. This revenue midpoint is in line with analysts' estimate of $4.12 billion.

But the company's guidance for the current quarter missed analysts' estimates. It expects earnings per share of 50 cents to 60 cents, well below consensus estimates of 71 cents. It guided for revenue of $1.25 to $1.35 billion, which was lower than the consensus estimate of $1.38 billion.