EA's stock rises on improved bottom line, revenue beat

By Jon Swartz

Shares of videogame maker Electronic Arts Inc. lit up 4% in extended trading Wednesday after the company reported a jump in net income and revenue that slightly beat analysts' estimates.

EA (EA) reported fiscal second-quarter net income of $399 million, or $1.47 a share, compared with net income of $299 million, or $1.07 a share, in the year-ago quarter.

The company, which earlier this year announced a 6% reduction in its workforce, amounting to about 800 people, reported net revenue of $1.91 billion, up slightly from $1.9 billion a year ago.

Analysts tracked by FactSet had been expecting $1.77 billion in revenue.

"We delivered a strong Q2 and successfully launched 'EA Sports FC,' transforming one of the largest franchises in the world into a powerful, interactive platform for the future of football fandom," EA Chief Executive Andrew Wilson said, noting the successor to the wildly popular "FIFA" videogame franchise, in a statement announcing the quarterly results.

EA executives said they expect fiscal 2024 net revenue of $7.3 billion to $7.7 billion; analysts polled by FactSet are forecasting $7.57 billion.

EA's stock has inched up 1% this year. The broader S&P 500 index SPX is up 10%.

-Jon Swartz

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11-01-23 1612ET

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