After the close of trading on Thursday, the value of Electronic Arts shares fell by 7%. This happened because forecasts for the fourth fiscal quarter were lower than expected.
On Thursday, after the close of trading, the value of EA shares was $69.79. However, after that, the company published financial forecasts for the fourth fiscal quarter, and the shares fell to $64.70.
The fall was due to the discrepancy between forecasts and expectations. Wall Street analysts predicted that in the fourth fiscal quarter, which ends on March 30 for EA, the company’s earnings per share will be 40 cents. The estimated income, therefore, should have reached $915.41. Instead, EA reported earnings per share of 40 cents and estimated revenue of $875 million.
However, the company can still improve its financial performance, according to experts of the VentureBeat resource. There will be several significant releases this quarter. The game Unravel and the title Plants vs. Zombies: Garden Warfare 2 will be released. In addition, EA will be able to increase sales through paid downloadable content in Star Wars: Battlefront.
A source: http://www.rttnews.com