Publisher's share price spikes nearly 15% following better-than-expected holiday-quarter report.
Yesterday, Electronic Arts reported its earnings for the quarter ending December 31, 2010. Using generally accepted accounting principles, it was a rough quarter for the company, with $322 million in losses on $1.05 billion of revenue. However, excluding one-time charges such as restructuring expenses, the company had a solid quarter, with profits of $196 million on $1.4 billion of revenue.
This morning, the markets reacted to the latter number--strongly. As of press time, EA stock was up nearly 15 percent, or $2.33, to $17.95. Trading volume was heavy, with 31.82 million shares in play, with the stock reaching a high of $18.20 earlier in the day.
EA's stock surge was also fueled by the company's announcement of a $600 million buyback of its stock over the next 18 months. The company also announced that during calendar 2010, five of its games, including Need for Speed: Hot Pursuit and Medal of Honor, had shipped over 5 million units each. One of those, FIFA 11, shipped over 11 million units worldwide. Digital revenue was also up 39 percent year-over-year.
Following EA's report, Wedbush analyst Michael Pachter sent out a note to investors in which he pegged the company's 12-month share price at $21.50. He maintained his "outperform" rating of the stock and narrowed his full-year guidance to $3.682-$3.782 billion from $3.65-$3.90 billion.
after having to start a new account on my ps3 for all ea games to play online... EA is on my crap list
I love how fickle the community is. Everyone hated EA 3 years ago. Now in light of Activision and EA's mellowing-out & branching-out ideas, they're the superstars again. No doubt, i used to pretty much loathe EA for their pratices back 3 years ago. Now they produce quality titles quite regularly.
2010 year was good, for Ea they have launched good games, Now we got also dead space 2 and Whole year in front with cool games, keep going like this, don't became greedy, Don't kick famous game developers from company (like Kotickvision :D ) and everything will be fine.
Ive been telling customers for weeks to buy EA shares and did anybody listen to me...no. Ive had EA shares since November and have been waiting for this announcement for weeks. Time to cash in me thinks.
Whenever I see the EA logo, I always think of EA as a sports game company before anything else, even if that isn't true anymore.
@Shardz7 So you've denied yourself the pleasure of playing the likes of Dead Space 1 & 2, Mass Effect 2, Dragon Age: Origins & Crysis, simply, because they have the EA logo on the front ??? Don't get me wrong, I'm disgusted by some of EA's practices: Online Pass-keys, rip-off DLC, "Encouraging" developers to include multiplayer in all games, bringing out unfinished games to make release dates, the yearly sports games that are pretty much the same every year. However, I'll still buy their games if I like the look of them. @tachsniper Are you serious ? EA are our only "hope" against greedy Activision. Because EA aren't greedy at all, right ???? Fool.
I actually like EA.. I know it's sad what they did with sports game (preferably Madden) but i don't see them as some evil giant corporation as i do, say, Activision.
Well, it certainly wasn't me mass purchasing their crap. I haven't bought an E.A. game since 1998 and I think I'll keep it that way for a while.
I bet EA is thankful for Bobby Kotick for taking all the hate off of EA! Oh man remember that, when we were all complaining and hating on EA? Good times!
EA have a big line of games this year. Dead Space 2 is just one game that did very well, next it will be Dragon Age 2 and Mass Effect 3, all comes out in the same year.
hey this is great news and I for one have enjoyed a handful of game's that have come out this past year and I'm looking forward to another great year from them.
Mass Effect 2 Dead Space Series Bad Company 2 Medal of Honor NFS HP I bought all these games and have throughly enjoyed them. Way to go EA!
Well, as it stands now I like EA better than Activision. I'm not fond of their DRM, but I really enjoyed Mass Effect 2 and Hot Pursuit (which, by the way, sold much better than I thought apparently). If they keep putting out quality games like those, there may be hope for them yet.
Pity, I was hoping them and Activision would go belly up so the market isn't saturated with their vile corporate greed.
if this is good news wait til they get their numbers on Dead Space 2..... the thing is selling like hot cakes right now.... and it should.... its a good game....
I personally think it's great to see EA is doing so good. They've published a lot of good games recently and I think they really deserve this. They're not nearly as bad as they once were and even back then, they were angels compared to Activision.
I have more EA published games than anything. Their devs do make some of the best games out there in almost all genres so good for them.
Pretty good news all things considered. EA often acts like a money-hungry corporation (as per many of the big publishers), but there are a lot of games they help make happen that I love, for instance BioWare's games and Dead Space.
Bad news. I hope EA goes bankrupt for monopolizing the NFL franchise. Thanks a lot EA for restricting 2k.
Yay. Wonderful. Now patch Tim Schafer's game. He already said he made a patch and you refuse to make it available.
You guys know that the share price only increased because of the stock buyback announcement, right?\ Still, it's good to see EA returning money to investors... unlike some companies like Apple...
finally something positive to report. We're tired of hearing krActivision's financial burdens and scams.
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