Electronic Arts Shares Surge 9 Percent on Strong Earnings
Electronic Arts beat earnings expectations in the most recent quarter -- the first since Larry Probst took over as CEO in March -- an accomplishment that sent its stock 9 percent higher in after-hours trading on Tuesday.
The maker of video games said digital sales soared as revenue from packaged goods dropped during its fiscal first quarter.
Still, the company reported a net loss of $121 million in the latest quarter on adjusted revenue that rose 1 percent to $495 million. On a per-share basis, Electronic Arts lost 40 cents while analysts predicted it would lose 60 cents.
During the regular trading session on Tuesday, the stock fell 1 percent to $23.83. The stock surged more than $2 a share, though, after the closing bell.
Among the highlights was a record quarter for sales of The Simpsons: Tapped Out. Also, FIFA 13 digital net revenue surged 92 percent to top $70 million in the quarter.
"EA had a solid quarter, driven by continued digital growth and disciplined cost management,” said Probst. “We are also executing on a clear set of goals for leadership on mobile, PC, current and next-generation consoles.”
Probst was a former CEO who took back the position in March after John Riccitiello stepped down, blaming himself when the company fell short of certain financial goals.