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Investing.com -- Electronic Arts Inc (NASDAQ:EA) reported quarterly earnings below Wall Street estimates and issued a weaker-than-expected outlook for the fourth quarter. Though stock was trading up around 1% afterhours on $1 bln share repurchase announcement.
The company posted earnings per share of $2.83 for the third quarter, missing analysts’ average estimate of $2.88. However, bookings for the quarter stood at $2.22 billion, slightly above expectations of $2.21 billion.
For the fourth quarter, EA projected earnings between $0.76 and $1.17 per share, well below the consensus estimate of $1.35. It also forecast bookings in the range of $1.44 billion to $1.59 billion, missing analysts’ expectations of $1.65 billion.
The company reaffirmed its full-year outlook but set the high end of its earnings and bookings guidance below consensus. EA said it expects fiscal 2025 earnings between $6.25 and $6.65 per share, compared with estimates of $6.69, and bookings between $7 billion and $7.15 billion, versus the consensus of $7.15 billion.
EA announced a $1 billion accelerated stock repurchase plan. "As we build on this momentum across EA, we are confident in a return to growth in FY26 and beyond as we bring our next wave of iconic entertainment to players and fans worldwide," CEO Andrew Wilson said.
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