Electronic Arts (ERTS) Higher Despite Weak Results and Guidance
Tweet
Share
E-mail
Get Alerts ERTS Hot Sheet
Join SI Premium – FREE
Despite lousy results and guidance, video game maker Electronic Arts (Nasdaq: ERTS) is 4% higher in after-hours action.
EA reported Q3 Non-GAAP EPS of $0.56, versus the analyst estimate of $0.88. Revenue for the quarter was $1.65 billion, versus the consensus of $1.90 billion. EA also lowered its guidance. EA sees a FY09 loss of $0.35 per share, versus the consensus of a profit of $0.60 and sees FY09 revenues of $4.2-$4.25 billion, versus the consensus of $4.66 billion. For FY10, Electronic Arts sees FY10 EPS of $1.00, versus the consensus of $1.09.
Electronic Arts is also cutting 11% of workforce, or 1,100 people, and closing 12 facilities. The company said the cost cutting actions will result in approximately $500 million of operating expense reductions in fiscal 2010.
EA reported Q3 Non-GAAP EPS of $0.56, versus the analyst estimate of $0.88. Revenue for the quarter was $1.65 billion, versus the consensus of $1.90 billion. EA also lowered its guidance. EA sees a FY09 loss of $0.35 per share, versus the consensus of a profit of $0.60 and sees FY09 revenues of $4.2-$4.25 billion, versus the consensus of $4.66 billion. For FY10, Electronic Arts sees FY10 EPS of $1.00, versus the consensus of $1.09.
Electronic Arts is also cutting 11% of workforce, or 1,100 people, and closing 12 facilities. The company said the cost cutting actions will result in approximately $500 million of operating expense reductions in fiscal 2010.
You May Also Be Interested In
Create E-mail Alert Related Categories
Insiders' BlogSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
