Electronic Arts Reports Q2 FY16 Financial Results

EA now expects adjusted full-year revenue of $4.50 billion, up $50 million, and per-share profit of $3, up 15 cents. In after-hours trading, EA’s stock rose 3 percent – and promptly fell 1 percent again. EA’s shares have more than doubled in the past year.

This is perhaps the most crucial quarter for EA, with its “Star Wars” game and the latest version of “Need for Speed” releasing around the crucial holiday shopping quarter. EA has reported that their EA Sports franchises has a monthly average player increase by 30% for their titles such as Madden NFL 16, NHL 16 and FIFA 16 combined.

Also their Battlefield franchise with Battlefield Hardline and Battlefield 4 continue to increase with 6 million monthly average players. Analysts thought EA might raise its forecast to between 10 million and 12 million units.

EA Games marked the biggest beta release by the company with the “Star Wars Battlefront”, according to a previous report from Latin Post.

For the quarter ending December 31, EA projected per-share earnings of $1.75 on revenue of roughly $1.775 billion. Our EA SPORTS titles are connecting millions of passionate fans around the world to each other and the sports they love, we have new mobile experiences for our players, and deeply-engaged communities in our live services.

EA also expect Star Wars: Battlefront to achieve strong sales into fiscal year 2017 and have a “long tail” due to the four expansion packs coming after launch.

During the second fiscal quarter EA repurchased 1.8 million shares for a total of $126 million.

Electronic Arts Inc. raised its earnings outlook for the second time in as many quarters as Wall Street and videogame players alike await the release of the company’s potential blockbuster: “Star Wars Battlefront”.

Chief Financial Officer Blake Jorgensen said in an interview that the company would raise its sales forecast for “Star Wars: Battlefront”. Excluding items, EA earned $0.65 per share.

Shares were down slightly after the results, and Wedbush Securities analyst Michael Pachter attributed the disappointment to the “implied” fourth-quarter profit estimate of 45 cents per share. It said it expected to sell 13m game in the 2016 financial year, up from an earlier projection of nine to 10 million.

Analysts were expecting a profit of $1.74 per share and revenue of $1.74 billion.