Published February 01, 2012
Videogame maker Electronic Arts (EA) reported a third-quarter profit, excluding one-time items, that blew away Wall Street expectations, however it forecast a much weaker fourth quarter, sending shares lower afterhours.
The company lost $205 million, or 62 cents a share, compared with a year-earlier loss of $322 million, or 97 cents. Excluding one-time items, the game manufacturer earned $334 million, or 99 cents, ahead of average analyst estimates of 93 cents in a Thomson Reuters poll.
Revenue for the three months ended Dec. 31 was $1.65 billion, up from $1.4 billion a year ago, trumping the Street’s view of $1.62 billion. Sales were led by Battlefield 3, FIFA12, Madden NFL 12 and new interest in its Star Wars game.
“We recorded our highest operating cash flow in 31 quarters and grew segment share in both Europe and North America,” said EA chief financial officer, Eric Brown.
However, in the current quarter the company anticipates non-GAAP revenues in the range of $925 to $975 million on earnings between 10 cents and 20 cents a share, far below Wall Street’s view of 29 cents on sales of $989.6 million.