Electronic Arts Stock Drops After Revenue Forecast

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Electronic Arts (EA) stock took a hit in late trading Tuesday as the game publisher revealed its revenue forecast for the current quarter, which fell roughly in line with expectations.

Record Q1 Results for FIFA, But Stock Takes a Dip

Despite reporting record fiscal first-quarter results for its FIFA game franchise, EA stock (ticker: EA) dropped 2% to $133.41 in after-hours trading.

The June-quarter adjusted earnings of $1.14 a share exceeded the consensus call of $1.02 among analysts surveyed by FactSet. Adjusted revenue also met expectations, coming in at $1.6 billion.

Underwhelming Forecast for the Current Quarter

Looking forward, Electronic Arts provided an adjusted revenue forecast range of $1.7 billion to $1.8 billion for the current quarter. However, Wall Street’s consensus call was for $1.8 billion.

In a news release, CFO Stuart Canfield commented, “We had a strong start to the fiscal year. Looking ahead, our teams remain focused on delivering long-term growth and profitability.”

EA Shares Compared to Nasdaq Composite

Over the past 12 months, EA shares have rallied by 4%, whereas the Nasdaq Composite index has seen a 16% increase in the same period.

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