Electronic Arts bets on game launches, raises full-year forecast

Reuters News
|
Posted: Oct 29, 2015 4:14 PM

(Reuters) - Electronic Arts Inc raised its full-year profit and sales forecasts, betting on the highly anticipated launches of "Star Wars: Battlefront" and "Need for Speed" titles.

The video-game publisher raised its full-year adjusted revenue forecast to $4.50 billion from $4.45 billion, and its adjusted profit forecast to $3.00 from $2.85 per share.

Analysts on average were expecting a profit of $2.96 per share on revenue of $4.53 billion, according to Thomson Reuters I/B/E/S.

For the third quarter, the company forecast net revenue of about $1.78 billion and profit of about $1.75 per share on an adjusted basis.

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

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.

Excluding items, the company earned 65 cents per share for the second quarter ended Sept. 30, beating analysts' estimate of 45 cents per share.

Adjusted revenue fell 6.1 percent to $1.15 billion, but topped analysts' estimates of $1.10 billion.

EA launched FIFA 16 and NHL 16 in September, and their physical versions topped research firm NPD Group's list of Top 10 Games for that month. Madden NFL 16, launched in August, was also among the top two games for both August and September. 

The Redwood City, California-based company's stock closed at $76.06 on Thursday on the Nasdaq.

(Reporting by Anya George Tharakan and Kshitiz Goliya in Bengaluru; Editing by Anil D'Silva)