REDWOOD SHORES (dpa-AFX) - Electronic Arts Inc. (EA) Tuesday reported a strong increase in first-quarter profit, driven largely by growth in revenues as gamers purchased titles for the new-gen consoles. As a result, both earnings and revenue for the quarter came in ahead of Wall Street estimates.
Moving ahead, the video-game maker detailed a mediocre outlook for the second quarter, and lowered its full-year 2015 guidance, citing the delayed launch of Battlefield Hardline and Dragon Age Inquisition.
The video game publisher continues to benefit from the demand for games for the next-generation consoles Xbox One and PlayStation 4 launched last fall. Electronic Arts claims to be the number one publisher of games on Xbox One and PlayStation 4, driven by strong titles like FIFA 14, Titanfall, Battlefield 4, and EA Sports UFC.
Redwood City, California-based Electronic Arts' first-quarter profit rose to $335 million or $1.04 per share from $222 million or $0.71 per share last year.
Adjusted profit for the quarter was $61 million or $0.19 per share, compared to a loss of $121 million or $0.40 per share a year ago. On average, 23 analysts polled by Thomson Reuters expected a loss of $0.04 per share for the quarter. Analysts' estimates typically exclude special items.
Electronic Arts revenue's for the quarter increased to $1.21 billion from $949 million a year ago. Revenues, excluding changes in deferred revenues, rose to $775 million from $495 million last year. Twenty-four analysts had a consensus revenue of $713.24 million for the quarter.
'EA delivered first quarter EPS above prior year and our guidance through a combination of revenue growth, higher gross margins and lower operating expenses,' said Chief Financial Officer Blake Jorgensen.
Looking ahead to the second quarter, the company expects a loss of about $0.12 per share and adjusted earnings of around $0.50 per share. Analysts currently expect earnings of $0.51 per share.
The company expects second-quarter revenues of about $965 million and adjusted revenues of about $1.143 billion. Twenty-four analysts currently expect revenues of $1.14 billion for the quarter.
For fiscal year 2015, the company now expect earnings of about $1.78 per share and revenues of around $4.30 billion. Earlier, EA expected earnings of about $2.37 per share and revenues of approximately $4.38 billion.
The company continues to expect adjusted earnings of about $1.85 per share and adjusted revenues of approximately $4.10 billion. Analysts currently expect earnings of $1.89 per share on revenues of $4.14 billion for 2015.
EA closed Tuesday's trading flat at $38.42 on a volume of 5.13 million shares on the Nasdaq. The stock gained $0.57 or 1.48% in after-hours trading.
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