News Corp, EA, Zulily Post Earnings


News Corp., Electronic Arts and Zulily released their earnings results from their most recently completed quarters after closing bell tonight.


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News Corp. posted earnings of 5 cents per share on $2.06 billion in revenue, a 1% decline, for its third fiscal quarter of 2015. Analysts had been expecting earnings of 7 cents per share on $2.12 billion in revenue. In the same quarter last year, News Corp. reported earnings of 11 cents per share on $2.08 billion in revenue.

EA reported adjusted earnings of 39 cents per share on adjusted revenue of $896 million for its fourth fiscal quarter of 2015. Analysts had been expecting the game maker to report earnings of 26 cents per share on $853 million in revenue for the quarter. In the same quarter last year, Electronic Arts posted non-GAAP earnings of 48 cents per share and non-GAAP revenue of $914 million.

Zulily reported non-GAAP earnings of 1 cent per share on $306.6 million in revenue, a 29% increase from last year. Analysts had been expecting losses of 3 cents per share and revenue of $313.1 million for the online retailer’s first fiscal quarter. In last year’s first quarter, Zulily broke even on a non-GAAP basis with $238 million in revenue.

Key metrics from News Corp.’s earnings report

News Corp reported $163 million in total segment EBITDA, compared to $175 million in the same quarter last year. Reported earnings were cut in half, falling from 8 cents last year to 4 cents per share this year.

Management said most of the 1% decline in revenue was due to currency fluctuations and lower ad revenues in their News and Information Services segment. Growth in Book Publishing and Digital Real Estate Services partially offset those negative impacts.

Key metrics from EA’s earnings report

Electronic Arts reported net earnings of $1.19 per share compared to last year’s $1.15 per share. The company’s revenue beat management’s guidance of $830 million, while diluted earnings of 39 cents also beat guidance, which was 22 cents per share. The game maker’s mobile revenue set a new record of $524 million for the full fiscal year.

EA’s board of directors approved a new $1 billion share repurchase program. The game maker’s management expects adjusted earnings for the 2016 fiscal year to be around $2.75 per share, compared to the consensus estimate of $2.63 per share. They expect non-GAAP revenue of about $4.4 billion for the full year.

Key metrics from Zulily’s earnings report

Zulily beat earnings estimates for the first quarter but significantly missed expectations for guidance. The online retailer reported a gross margin of 30.1%, an increase from last year, and non-GAAP adjusted EBITDA of $4.4 million a 66% year over year increase.

The number of active customers increased 35% to 5 million, while total orders placed increased 15% to 6.3 million. The average order value increased 2% to $56.26. For the 12 months ending on March 29, 86% of orders were from past customers. In the first quarter, about 55% of orders were placed on mobile devices, an increase from 50% in the previous quarter.

Zulily expects net sales of between $285 million and $300 million and adjusted EBITDA of between $8 million and $12 million for the June quarter. For the full year, the online retailer expects net sales of between $1.3 billion and $1.4 billion and adjusted EBITDA of between $55 million and $70 million. Consensus estimates had suggested revenue of $358.57 million for the June quarter and $1.56 billion in full year revenue.