Electronic Arts (NASDAQ:EA) fell short of Wall Street’s earnings expectations and delivered a weaker-than-anticipated outlook for the fourth quarter. However, investor sentiment remained positive, with shares rising over 2% in pre-market trading Wednesday following the announcement of a $1 billion share repurchase program.
For the third quarter, EA reported earnings per share of $2.83, missing analysts’ projections of $2.88. On the bright side, bookings came in at $2.22 billion, slightly exceeding the $2.21 billion consensus estimate.
Looking ahead, the company’s fourth-quarter forecast disappointed investors. EA expects earnings between $0.76 and $1.17 per share, falling short of the anticipated $1.35. Projected bookings of $1.44 billion to $1.59 billion also came in below Wall Street’s $1.65 billion estimate.
The company reaffirmed its full-year outlook but provided a cautious range that left the high end of its earnings and bookings guidance below analyst expectations. EA anticipates fiscal 2025 earnings between $6.25 and $6.65 per share, slightly under the projected $6.69. Bookings are expected to range between $7 billion and $7.15 billion, with the upper bound aligning with analyst forecasts.
The cautious guidance follows EA’s recent decision to trim its annual bookings forecast, citing weaker in-game spending on "FC 25" and disappointing early performance of its latest Dragon Age installment.
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