Electronic Arts stock has shot through the roof in after hours trading—now up about 10 percent. Investors are reacting to a laundry list of better-than-expected news.Earnings came in at 59 cents per share, up 75 percentfrom last year and two pennies better than expected.
The company boosted its forecast for the current quarter higher. Now it expects revenue between $975 million to $1.08 billion while analysts were expecting just $937 million.
Plus there's the news that Electronic Arts' board approved a $600 million buyback for the next 18 months. The disappointment of today's announcement was revenue: it missed analysts estimates just slightly.
More good news for Electronic Arts . Digital revenue is growing fast, growing 39 percent in the past quarter, putting the company well on track to meet its goal of $750 million in digital revenue in the fiscal year. For some perspective: last quarter EA's digital revenues grew 20 percent year over year and analysts were hoping digital growth would hit 35 percent this quarter.
There's no question Electronic Arts is betting digital will be a huge part of its future. In the earnings release it rattles off wide-ranging examples of its digital success. Last quarter Electronic Arts was the top publisher in the AppleApp Store in Western markets for the iPhone and iPad. EA's Scrabble game was the number one selling item on the Kindle last week, beating every book.
The company reiterates Wall Street analysts' hope that its fiscal Q4, the quarter we're in right now, will look even better than today's numbers. DeadSpace 2, which launched last week, drew higher critical ratings than the original game. For the current quarter it raised the lower end of its EPS estimates.
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