Electronic Arts Reports Q4 Results (EA)

Video game manufacturer Electronic Arts (NASDAQ: EA), on Monday, announced its fiscal fourth results on Monday. The company reported better than expected fourth quarter profit as its revenues almost doubled in the period, thanks to rising demand for its new games.

However, the company also issued a bleak forecast for the current period.

Reacting to downbeat forecast, Company’s shares plunged almost 10% to $13.68, in afterhours trading on Monday.

The company expects its non-GAAP revenue in the first quarter of $500 million and a loss between 45 cents and 40 cents a much higher than street’s forecasting- which expects a loss 33 cents a share on sales of $579.4 million.

For fiscal 2013, the video-game maker foresees non-GAAP revenue of $4.3 billion, with earnings excluding items between $1.05 and $1.20 a share. Analysts are anticipating a for a full-year profit of $1.12 a share on sales of $4.49 billion.

Headquartered in The Redwood City, California, – Electronic Art’s  net income stood at $400 million, or $1.20 a share, compared with a year-earlier $151 million, or 45 cents. After adjusting for one-time expenses, EA earned 17 cents, beating average analyst estimates in a Thomson Reuters poll by a penny.

Company’s revenue for the three months ended March 31 was at $1.37 billion, up from $1.09 billion a year ago. After excluding items, sales stood at $977 million, comfortably surpassing the Street’s view of $957.9 million including its own February forecast of $925 to $975 million.

According to the company sources, digital sales once again boosted the profits, with revenue from games including FIFA12, Battlefield and its new Star Wars game helping to double sales to $419 million from $211 million a year ago.

Commenting over the results, Electronic Arts interim chief financial officer, Ken Barker said “ Digital growth drove our margins in fiscal (2012) and we project this trend will continue in fiscal (2013).”

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Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.