EA’s tepid 4Q forecast adjusts below analysts’ expectations
Electronic Arts Inc. adjusted its forecast for fourth-quarter revenue below analysts’ estimates after being pressured by the delayed launch of its anticipated title “NBA Live”. EA delayed the release of “NBA Live” last quarter in order to coincide with the launch of new gaming consoles from Microsoft and Sony at the end of 2020.
Meanwhile, it focused more on its other battle-royale titles such as “Apex Legends”, “Fortnite”, and “Player Unknown’s Battlegrounds” to attract a younger demographic.
The tepid forecast came as the dominance of console-based game franchises has been challenged by the rise of the mobile gaming industry with its free-to-play games and engaging formats.
EA had raised its full-year adjusted revenue forecast from $5.13 billion to $5.15 billion, settling below analysts’ expectations of $5.21 billion.
On an adjusted basis, EA’s revenue jumped by 22.9% to $1.98 billion which surpassed an analysts’ expectation of $1.97 billion.
Net income for the third quarter ending December 31 rose to $346 million ($1.18/share) from $262 million (86 cents/share) a year earlier.
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