Electronic Arts Shares Surge 9 Percent on Strong Earnings
The maker of video games lost 40 cents per share in its first fiscal quarter while analysts expected it to lose 60 cents.
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.