Video-game publisher Electronic Arts Inc. (EA) said Tuesday after the markets closed that its first quarter profit fell 9% from last year, as revenue dropped.
The company's adjusted loss per share was smaller than analysts expected, but its quarterly revenue fell short of analysts' forecast. However, the company reconfirmed its fiscal 2013 adjusted earnings outlook.
Electronic Arts also said that its Board of Directors has authorized a program to repurchase up to $500 million of the company's common stock.
"We had a solid first quarter and are reconfirming non-GAAP guidance of annual earnings per share growth of 30% at the midpoint of our guidance," said Electronic Arts' Interim Chief Financial Officer Ken Barker. "The $500 million stock buyback demonstrates our confidence in EA's future."
Also Tuesday after the bell, rival Take-Two Interactive Software Inc. (TTWO) reported a sharply wider first quarter net loss amid a 32% drop in quarterly revenue due to weak sales of its new title "Max Payne 3." The company's results also came in worse than analysts' expected. At the same time, the company cuts its revenue and adjusted earnings outlook for the fiscal year 2013.
Electronic Arts shares are currently gaining 1.36% in after hours trading after closing the day's regular trading session at $11.02, down 21 cents or 1.87%. The shares trad in a 52-week range of $10.86 to $26.13.
Take-Two shares are currently losing 2.05% in after hours trading after closing the day's regular trading session at $8.78, down 35 cents or 3.83%. The shares trade in a 52-week range of $8.69 to $16.99.
For the first quarter ended June 30, 2012, Electronic Arts reported net income of $201 million or $0.63 per share, compared to $221 million or $0.66 per share for the year-ago quarter.
Excluding the impact of the change in deferred revenue and other items, adjusted net loss for the first quarter was $130 million or $0.41 per share, compared to an adjusted net loss of $123 million or $0.37 per share in the prior year quarter.
On average, 24 analysts polled by Thomson Reuters expected the company to report a loss of $0.42 per share for the first quarter. Analysts' estimates typically exclude special items.
Net revenue for the first quarter declined 4% to $955 million from $999 million a year ago, while adjusted net revenue for the quarter fell 6% to $491 million from $524 million last year due to a reduction in distribution revenue for the quarter. Twenty-three had a consensus revenue estimate of $500.06 million for the first quarter.
For the first quarter, the company had forecast net revenue of about $950 million, adjusted net revenue of about $500 million, earnings of $0.40 to $0.48 per share and adjusted net loss of $0.45 to $0.40 per share.
Net digital revenue for the quarter rose 47% to $342 million from $232 million a year ago, while net publishing packaged goods and other revenue fell 8.5% to $9592 million from $647 million last year. Net distribution packaged goods revenue for the quarter dropped 82.5% to $21 million from $120 million a year earlier.
Looking forward to the second quarter, the company forecast net revenue of $650 to $700 million, adjusted net revenue of $1.05 to $1.10 billion, a net loss of $1.43 to $1.36 per share and adjusted earnings of $0.07 to $0.12 per share.
Analysts currently expect the company to earn $0.14 per share on revenue of $1.07 billion for the second quarter.
For the fiscal year 2013, the company now expects net revenue of $3.90 to $4.05 billion and adjusted. net revenue of $4.10 to $4.25 billion. Previously, the company expected net revenue of about $4.075 billion and adjusted net revenue of about $4.300 billion.
Basic loss and diluted earnings per share for fiscal 2013 is now expected to be a loss of $0.17 to profit of $0.05. The company's prior guidance was for a net loss of $0.36 to $0.16 per share.
The company continues to expects fiscal 2013 adjusted earnings to be in the range of $1.05 to $1.20 per share.
Analysts currently expect the company to earn $1.06 per share on revenue of $4.27 billion for the fiscal year 2013.
The company today named Blake Jorgensen as its new chief financial officer.
He will join the Electronic Arts in early September.
The company's adjusted loss per share was smaller than analysts expected, but its quarterly revenue fell short of analysts' forecast. However, the company reconfirmed its fiscal 2013 adjusted earnings outlook.
Electronic Arts also said that its Board of Directors has authorized a program to repurchase up to $500 million of the company's common stock.
"We had a solid first quarter and are reconfirming non-GAAP guidance of annual earnings per share growth of 30% at the midpoint of our guidance," said Electronic Arts' Interim Chief Financial Officer Ken Barker. "The $500 million stock buyback demonstrates our confidence in EA's future."
Also Tuesday after the bell, rival Take-Two Interactive Software Inc. (TTWO) reported a sharply wider first quarter net loss amid a 32% drop in quarterly revenue due to weak sales of its new title "Max Payne 3." The company's results also came in worse than analysts' expected. At the same time, the company cuts its revenue and adjusted earnings outlook for the fiscal year 2013.
Electronic Arts shares are currently gaining 1.36% in after hours trading after closing the day's regular trading session at $11.02, down 21 cents or 1.87%. The shares trad in a 52-week range of $10.86 to $26.13.
Take-Two shares are currently losing 2.05% in after hours trading after closing the day's regular trading session at $8.78, down 35 cents or 3.83%. The shares trade in a 52-week range of $8.69 to $16.99.
For the first quarter ended June 30, 2012, Electronic Arts reported net income of $201 million or $0.63 per share, compared to $221 million or $0.66 per share for the year-ago quarter.
Excluding the impact of the change in deferred revenue and other items, adjusted net loss for the first quarter was $130 million or $0.41 per share, compared to an adjusted net loss of $123 million or $0.37 per share in the prior year quarter.
On average, 24 analysts polled by Thomson Reuters expected the company to report a loss of $0.42 per share for the first quarter. Analysts' estimates typically exclude special items.
Net revenue for the first quarter declined 4% to $955 million from $999 million a year ago, while adjusted net revenue for the quarter fell 6% to $491 million from $524 million last year due to a reduction in distribution revenue for the quarter. Twenty-three had a consensus revenue estimate of $500.06 million for the first quarter.
For the first quarter, the company had forecast net revenue of about $950 million, adjusted net revenue of about $500 million, earnings of $0.40 to $0.48 per share and adjusted net loss of $0.45 to $0.40 per share.
Net digital revenue for the quarter rose 47% to $342 million from $232 million a year ago, while net publishing packaged goods and other revenue fell 8.5% to $9592 million from $647 million last year. Net distribution packaged goods revenue for the quarter dropped 82.5% to $21 million from $120 million a year earlier.
Looking forward to the second quarter, the company forecast net revenue of $650 to $700 million, adjusted net revenue of $1.05 to $1.10 billion, a net loss of $1.43 to $1.36 per share and adjusted earnings of $0.07 to $0.12 per share.
Analysts currently expect the company to earn $0.14 per share on revenue of $1.07 billion for the second quarter.
For the fiscal year 2013, the company now expects net revenue of $3.90 to $4.05 billion and adjusted. net revenue of $4.10 to $4.25 billion. Previously, the company expected net revenue of about $4.075 billion and adjusted net revenue of about $4.300 billion.
Basic loss and diluted earnings per share for fiscal 2013 is now expected to be a loss of $0.17 to profit of $0.05. The company's prior guidance was for a net loss of $0.36 to $0.16 per share.
The company continues to expects fiscal 2013 adjusted earnings to be in the range of $1.05 to $1.20 per share.
Analysts currently expect the company to earn $1.06 per share on revenue of $4.27 billion for the fiscal year 2013.
The company today named Blake Jorgensen as its new chief financial officer.
He will join the Electronic Arts in early September.
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