Tuesday February 05, 2019

Electronic Arts Stock Falls 14% After Missing Q3 2019 Earnings Estimate

Electronic Arts stock fell 14% in after hours trading as the gaming giant missed its Q3 2019 earnings estimate. EA reported revenue totaling $1.61 billion compared to the Refinitiv estimate of $1.75 billion. Earnings were $1.95 per share compared to the analyst estimate of $1.94 per share. EA expects Q4 2019 revenue to be approximately $1.163 billion with a net income of $170 million.

"The video game industry continues to grow through a year of intense competition and transformational change," said CEO Andrew Wilson. "Q3 was a difficult quarter for Electronic Arts and we did not perform to our expectations. We are now applying the strengths of our company to sharpen our execution and focus on delivering great new games and long-term live services for our players. We're very excited about Apex Legends, the upcoming launch of Anthem, and a deep line-up of new experiences that we'll bring to our global communities next fiscal year."

"FIFA stands out as a robust franchise through a tumultuous year in the video game industry," said COO and CFO Blake Jorgensen. "Elsewhere in the business, we're making adjustments to improve execution and we're refocusing R&D. Looking forward, we're delighted to launch Anthem, our new IP, to grow Apex Legends and related Titanfall experiences, to deliver new Plants vs. Zombies and Need for Speed titles, and to add Star Wars Jedi: Fallen Order to our sports titles in the fall."

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