Electronic Arts Stock Sees Lift After Strong Guidance
Shares of Electronic Arts surged nine percent in the after-hours session Tuesday, as the video-game maker forecast fiscal-year earnings above the expectations of Wall Street.
In the most recent quarter, revenue declined to $1.2 billion fro $1.4 billion in the same frame last year. Net income fell to $323 million from $400 million.
Electronic Arts has been going through changes of late, including downsizing its staff and losing CEO John Riccitiello, who stepped down in March. And on Monday, the company said it struck a deal with Disney/Lucasfilm to create games based on the Star Wars franchise.
Highlights during the quarter included The Simpsons: Tapped Out, which generated nearly $10 million in digital revenue during March; Battlefield 3 Premium generating $120 million in revenue in the quarter; and SimCity selling 1.6 million units since launching in March.
Shares of Electronic Arts rose one percent Tuesday to $18.41 and traded near $20 after the closing bell.