Electronic Arts posts $381 million loss

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By Associated Press | Updated: 1 November 2012 09:29 IST
Shares of Electronic Arts dipped in premarket trading Wednesday after its outlook fell short of most Wall Street expectations.

The video game publisher posted a loss for its second quarter of $381 million, or $1.21 per share, for the July-September period. That compares with a loss of $340 million, or $1.03 per share, a year earlier.

Revenue was $711 million, down slightly from last year's $715 million.

Adjusted earnings were 15 cents per share and adjusted revenue was $1.08 billion in the latest quarter. These figures exclude special items, stock compensation expenses, and account for deferred costs and revenue from games with online components.

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Analysts, on average, were expecting adjusted earnings of 11 cents per share and adjusted revenue of $1.08 billion, according to a poll by FactSet.

"We believe EA remains in a state of transition, as it builds out digital infrastructure and online revenues, while managing a declining console business," wrote Baird analyst Colin Sebastian on a note to investors.

For the current quarter, Electronic Arts Inc. expects adjusted earnings of 50 cents to 60 cents per share and revenue of $900 million to $1 billion.

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Analysts are expecting higher earnings of 62 cents per share and revenue of $1.34 billion.

Shares fell 2 percent, or 27 cents, to $11.46 before the opening bell.

 

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