Video game publisher Electronic Arts late Tuesday smashed estimates for the March quarter and guided above views for the year ahead. EA stock jumped in extended trading.
The Redwood City, Calif.-based company earned an adjusted $1.58 a share on net bookings of $1.8 billion in its fiscal fourth quarter ended March 31. Analysts polled by FactSet had expected earnings of $1.05 a share on adjusted sales of $1.56 billion. On a year-over-year basis, EA earnings increased 15% while net bookings rose 8%.
Its guidance for the current quarter missed views, but its outlook for the full year topped estimates.
For its current fiscal first quarter, Electronic Arts guided to adjusted earnings of 5 cents a share on net bookings of $1.23 billion. Analysts were looking for earnings of 52 cents a share on net bookings of $1.27 billion in the June quarter.
For the current fiscal year, EA forecast adjusted earnings of $8 a share on net bookings of $7.8 billion, based on the midpoint of its outlook. Analysts were modeling earnings of $7.50 a share on net bookings of $7.58 billion in fiscal 2026. In the just-finished fiscal 2025, EA earned an adjusted $7.22 a share on net bookings of $7.36 billion.
"As we look to the future, we're confident in our ability to execute across a deep pipeline — beginning this summer with the highly anticipated reveal of 'Battlefield,' a pivotal step in delivering on our next generation of blockbuster entertainment," Chief Executive Andrew Wilson said in a news release.
Wilson credited EA's sports titles as well as "The Sims" and new title "Split Fiction" for the company's outperformance in the March quarter.
EA Stock Rises After Report
In after-hours trading on the stock market today, EA stock surged more than 5% to 162.48. During the regular session, EA stock dipped a fraction to close at 154.54.
Analysts say Electronic Arts is likely to benefit from the delay of "Grand Theft Auto 6" from rival Take-Two Interactive Software. Take-Two shifted the release of "GTA 6" into next year, opening up the holiday shopping season for other games, including the latest in EA's "Battlefield" series.
EA stock is on the IBD Tech Leaders list.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
