Electronic Arts forecasts sales below estimates as pandemic boom fades
2022.05.10 23:32
FILE PHOTO: An Electronic Arts (EA) video game logo is seen at the Electronic Entertainment Expo, or E3, in Los Angeles, California, United States, June 17, 2015. REUTERS/Lucy Nicholson
(Reuters) – Electronic Arts Inc (NASDAQ:EA) on Tuesday forecast first-quarter adjusted sales below estimates, bracing for weaker sales of its “Battlefield 2042” title and a slowdown in lockdown-fueled demand.
The results come hours after the company said it was ending a lucrative partnership with world soccer governing body FIFA after nearly three decades.
The Redwood (NYSE:RWT) City, California-based company’s shares were down 1.3% in extended trading.
The lightning surge in sales fueled by lockdown-weary gamers is starting to fade as normal life resumes, while rising inflation threatens to curb spending power.
Electronic Arts forecast current-quarter adjusted sales between $1.20 billion and $1.25 billion, compared with analysts’ average expectation of $1.44 billion, according to Refinitiv IBES data.
For the fourth quarter ended March 31, adjusted sales stood at $1.75 billion, slightly below estimates of $1.78 billion.
However, revenue from live services – which makes up most of EA’s sales – rose to $1.39 billion in the quarter, from $1.1 billion a year earlier.
