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Electronic Arts (EA) Posts Q2 Results, Stock Slumps on Weak Guidance

Electronic Arts (EA) just released its second-quarter fiscal 2017 earnings results, posting adjusted earnings of $0.43 per share and adjusted revenue of $1.098 billion.

Currently, EA has a Zacks Rank #2 (Buy), but it is subject to change following the release of the company's latest earnings report. Here are 5 key statistics from this just announced report below.

Electronic Arts:

Beat earnings estimates . The company posted adjusted earnings of 43 cents per share ( excluding 56 cents from non-recurring items ), which beat our Zacks Consensus Estimate of $0.29. EA's reported loss of 13 cents per share did not include a change in deferred revenue of $200 million.

Beat revenue estimates . The company saw adjusted revenue figures of $1.098, beating our estimate of $1.091 billion.

For the full fiscal year, EA expects to see revenues of $4.77 billion and diluted earnings per share of $2.69. Our current consensus estimates call for earnings of $3.14 per share on revenues of $4.93 billion. EA also expects adjusted revenue of $2.04 billion for the holiday quarter, which comes in below our consensus estimate of $2.07 billion.

EA highlighted the performance of its EA Sports division. Over the trailing twelve-months, net sales from FIFA, Madden, and Hockey Ultimate Team are up 15%.

EA was up 2.75% to $75.70 as of 4:28 p.m. EST in after-hours trading shortly after its earnings report was released.

Here's a graph that looks at Electronic Arts' latest earnings performance:

ELECTR ARTS INC Price, Consensus and EPS Surprise

ELECTR ARTS INC Price, Consensus and EPS Surprise | ELECTR ARTS INC Quote

Electronic Arts Inc. operates in two principal business segments globally: EA Core business segment: creation, marketing and distribution of entertainment software and the EA.com business segment: creation, marketing and distribution of entertainment software which can be played or sold online.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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