Electronic Arts Inc. (EA) Crushes Earnings Estimates

Electronic Arts Inc. (EA) Crushes Earnings Estimates

Electronics Arts Inc. (NASDAQ:EA) released its earnings numbers for the three months through September this afternoon after the market closed on Wall Street. The company showed earnings of 33 cents per share on revenue of $1.04 billion. On today’s market stock in the gaming company dropped appreciably and finished the day’s trading at $24.13 per share.

Electronic Arts Inc. (EA) Crushes Earnings Estimates

In the run-up to the release of these earnings results, analysts studying the company were looking for earnings per share of 12 cents from the company. Revenue for the three months, which Electronics Arts Inc. (NASDAQ:EA) recorded as its second quarter of 2014, was expected to come in at $978 million.

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Electronic Arts earnings

In the same three months of 2012, Electronics Arts Inc. (NASDAQ:EA) recorded earnings per share of 15 cents per share on revenue totaling $1.1 billion. The company’s earnings have been a little low in recent quarters, but they are expected to expand as a new generation of consoles hits the market. Judging by the company’s valuation, investors are expecting a good deal of growth in the coming years.

Electronic Arts Inc. (NASDAQ:EA) shares have risen by more than 66% since January 1. The company’s stock is trading at more than 60 times earnings. That prices in a lot of growth and could make the company’s earnings volatile on delivery of earnings.

Electronic Arts new releases

The coming fourth quarter is promising to be a big one for Electronic Arts Inc. (NASDAQ:EA). The company will release a batch of new titles for the current generation of consoles as well as a handful for the next generation. One of the company’s biggest releases of the year, Battlefield 4, is being released today.

Electronic Arts Inc. (NASDAQ:EA) has suffered from the fall in video game demand in the last year as gamers stopped buying games as they saved up for the next generation of consoles. The company’s demand is set to pick up in the fourth quarter. Analysts are looking for earnings of $1.35 per share from the company’s December quarter.

Electronic Arts Inc. (NASDAQ:EA) is one of the top companies in mobile gaming, and that is seen as a major driver of growth in the years to come. Gaming is a new market and it’s relatively difficult to analyze as a result. Electronic Arts will host a conference call to discuss its earnings numbers at 5 PM EST.

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