Business Corpus: Electronic Arts Tops Quarterly Views, But EA Stock Falls On OutlookVideo game publisher Electronic Arts beat Wall Street's estimates for its fiscal second quarter. But EA stock dropped in extended trading on weak sales guidance for the third quarter. The post Electronic Arts Tops Quarterly Views, But EA Stock Falls On Outlook appeared first on Investor's Business Daily.

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Video game publisher Electronic Arts (EA) late Tuesday beat Wall Street's estimates for its fiscal second quarter. But EA stock dropped in extended trading on weak sales guidance.

The Redwood City, Calif.-based company earned an adjusted 88 cents a share on net bookings of $1.22 billion in the quarter ended Sept. 30. Analysts expected it to earn 58 cents a share on sales of $1.18 billion. In the year-earlier period, EA earned 62 cents a share on sales of $1.18 billion.

For the current quarter, EA guided to adjusted earnings per share of $1.90 on net bookings of $1.725 billion. Wall Street was modeling EA to earn $2.42 a share on sales of $2 billion in the December quarter.

For the full fiscal year, EA expects adjusted earnings of $4.50 a share on net bookings of $5.2 billion. Analysts were targeting earnings per share of $4.61 on sales of $5.27 billion. EA's fiscal year ends March 31.

Electronic Arts stock fell 4.5% in after-hours trading on the stock market today. During the regular session, it rose 4% to 94.83.

EA Guidance Weighted To Fourth Quarter

EA's guidance shifts much of its expectations for the remainder of fiscal 2019 into the fourth quarter, Baird analyst Colin Sebastian said.

In August, EA delayed its big holiday release, "Battlefield 5," by four weeks until Nov. 20.

"It was a strong second quarter, as we entertained players with four high-quality new EA Sports games, hundreds of content updates in our live services, and esports programs that reached record viewership," Chief Executive Andrew Wilson said in a statement.

He added, "We're incredibly excited to bring innovative new games like 'Battlefield 5' and 'Command & Conquer: Rivals' to our players this holiday season, and launch our breakthrough new IP (intellectual property) 'Anthem' in February."

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