California’s EA Sports forecasts full-year revenue above estimates amid lockdown

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California’s EA Sports forecasts full-year revenue above estimates amid lockdown

On Tuesday, the 5th of May 2020, EA Sports, the Redwood City, CA-based American multinational video game company, the second-largest gaming company across the United States and Europe by revenue and market cap after Activision Blizzard, had released earnings’ reports for its fourth quarter of the year that ended on March 31st, which had insanely beaten Wall St.

estimates as a pandemic-driven home-sheltering appears to be buoying up gaming across the globe. Aside from that, the Californian video game publisher had also forecasted its full-year operational profit above an analysts’ estimate to $5.55 billion on Tuesday (May 5th), beating an analysts’ estimate of $5.37 billion, while according to the gamemaker’s fourth quarterly earnings’ report, EA Sports’ net income had nearly doubled up to $418 billion or $1.43 cents per share in its fourth quarter that ended on March 31st, compared to the same time a year earlier.

Nonetheless, on an adjusted basis, the video gamemaker’s quarterly revenue fell to $1.21 billion from an earlier $1.36 billion on a year-on-year basis, however, had beaten past an analysts’ estimate of $1.19 billion, IBES data from Refinitiv had revealed.

Besides, adding that the pandemic-led lockdown had spurred up its balance sheet, EA said in a statement on Tuesday (May 5th), “With more people staying at home, we have experienced, and are continuing to experience, heightened levels of engagement and live services net bookings growth to date.

” Nevertheless, followed by its fairly upbeat quarterly earnings’ report, Nasdaq-listed EA stocks had wrapped up Tuesday’s (May 5th) market 2.38 per cent higher to $119.61 a share, but went through a sweeping sell-off in after-market trading and during preparation of the report, EA stocks were trading just a notch shy of 6 per cent lower to $113.63 per share.