Electronic Arts Pops on Upbeat Full-Year Guidance
NEW YORK (TheStreet) -- Electronic Arts
The second largest game maker by revenue forecast fiscal 2014 earnings of $1.20 a share, above the average analyst estimate of $1.10, according to a Thomson Reuters survey. The company expects full-year revenue of $4 billion, in line with expectations.
"As we enter a new fiscal year, EA is well-positioned for dynamic growth on next generation consoles, PCs, and mobile platforms," said Executive Chairman Larry Probst in a statement. "With world-class games, a rapidly growing digital business, and top-notch creative talent, we are excited about EA's strategy for FY 2014 and beyond."
Chief Financial Officer Blake Jorgensen said that the company has a "solid operating plan with disciplined R&D spending and a sharp focus on delivering the best games and services."
"We are holding our FY 2014 operating expenses flat to the prior year - a significant achievement in a console transition year," he said.
For the first quarter, the company expects loss per share of 62 cents on revenue of $450 million, versus Wall Street estimates of loss of 32 cents a share on revenue of $619.74 million.
Electronic Arts advanced during Tuesday's trading session after it and media giant Walt Disney
For the fourth quarter, Electronic Arts booked earnings of 55 cents a share on revenue of $1.04 billion, compared with the average analyst earnings expectation of 57 cents a share on sales of $1.03 billion, as R&D expenses rose to $287 million from $274 million a year ago. The company said it was the very top publisher on Western retail markets in the March quarter, and the no. 1 global publisher in the iOS game market for fiscal 2013. EA said that its FIFA 13 digital net revenue topped $200 million in 2013, a 94% increase from FIFA 12 in the prior year.
The company's games and services for mobile and handheld digital revenue generated $104 million in the quarter, a 21% in digital net revenue from a year ago.
Rival publishing heavyweight Activision Blizzard
Written by Andrea Tse in New York
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