REDWOOD SHORES (dpa-AFX) - Video game publisher Electronic Arts Inc. (EA) Tuesday said its preliminary third-quarter profit increased from the prior year, supported by growth in revenues. Both adjusted earnings and revenues topped estimates, and the company guided the full year above analysts' expectations. The stock climbed over 4 percent in the extended trade.
Net income for the quarter was $142 million or $0.44 per share, compared to a loss of $308 million or $1.00 per share in the prior year.
Adjusted earnings per share was $1.22 for the quarter, while it totaled $1.26 last year. On average, 22 analysts polled by Thomson Reuters expected the company to report earnings per share of $0.92 for the quarter. Analysts' estimates typically exclude special items.
Net revenue increased to $1.13 billion from $808 million last year. Non-GAAP net revenue was $1.428 billion, compared to $1.57 billion in the prior year. Analysts expected revenue of $1.29 billion for the quarter.
Net revenue of $1.428 billion was above the company's guidance of $1.275 billion, and earnings per share of $1.22 topped its outlook of $0.90.
Chief Executive Officer Andrew Wilson said, 'Electronic Arts delivered amazing experiences to our players in Q3, from the award-winning Dragon Age: Inquisition to SimCity BuildIt to our live services for FIFA, Madden NFL and more. Great execution with our leading IP, new mobile hits and continued strength in our catalogue of top games and services were the foundation for an excellent performance in Q3.'
For the fourth quarter of fiscal 2015, the company expects adjusted net revenue to be approximately $830 million, and adjusted earnings per share to be $0.22. Analysts expect the company to report fourth-quarter earnings per share of $0.26 on revenue of $911.64 million.
For fiscal 2015 ending March 31, 2015, the company expects non-GAAP net revenue to be about $4.253 billion and adjusted earnings per share to be around $2.35. Analysts expect the company to report fiscal year earnings per share of $2.09 on revenue of $4.20 billion.
The stock, which closed down 2.2 percent on Tuesday at $48.41, gained 4.3 percent in the extended trade.
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