Electronic Arts Clocks Q1 Beat, Stock Falls As Outlook Lags Street Expectations

Electronic Arts Inc. EA shares are trading lower in Tuesday's after-hours session after the company reported first-quarter results. Here's what to know.

What Happened: The company reported net bookings of $1.578 billion compared to estimates of $1.29 billion, up 21% year-over-year. It reported earnings per share of $1.47, beating the consensus of $1.09.

EA expects net bookings for the second quarter to be approximately between $1.700 billion to $1.800 billion. Net bookings for the fiscal year 2024 are expected to be approximately between $7.300 billion and $7.700 billion, versus analyst consensus of $7.60 billion.

The company anticipates second-quarter earnings per share of approximately $0.72 and $0.89, much lower than the analyst consensus of $1.48. It sees fiscal year 2024 earnings per share at $3.42 and $3.92, significantly lower than analyst expectations.

"EA delivered a record Q1, driven by strong momentum in EA SPORTS global football and Star Wars Jedi: Survivor," said Andrew Wilson, CEO of EA. 

"Our exceptional teams are creating innovative entertainment experiences across our multi-year pipeline, starting with the highly anticipated, culture defining titles Madden NFL 24 and EA SPORTS FC 24."

Related Link: Arista Networks Shows Strong Growth Engine in 2Q23, Fueled by Enterprise Demand Surge: Analysts

EA Price Action: EA shares were down 3.76% after hours at $131.00 at the time of publication, according to Benzinga Pro.

Image by Rene from Pixabay