In This Article:
Justin Sullivan / Getty Images
Key Takeaways
-
Electronic Arts shares are tumbling 15% in premarket trading Thursday, a day after slumping demand for its EA SPORTS FC 25 video game prompted the company to cut its outlook.
-
The company projected net bookings to be $2.22 billion for the fiscal third quarter, down from $2.4 billion to $2.55 billion previously.
-
EA also cut its fiscal 2025 net bookings forecast to a range of $7 billion to $7.15 billion, down from $7.5 billion to $7.8 billion.
Electronic Arts (EA) shares are tumbling in premarket trading Thursday, a day after slumping demand for its EA SPORTS FC 25 video game prompted the company to cut its outlook.
In preliminary results announced late Wednesday, the company projected fiscal third-quarter net bookings to be $2.22 billion. It previously had forecast Q3 net bookings of $2.4 billion to $2.55 billion, while analysts polled by Visible Alpha expected $2.44 billion.
EA also cut its fiscal 2025 net bookings forecast to a range of $7 billion to $7.15 billion, down from $7.5 billion to $7.8 billion.
EA SPORTS FC 25, Dragon Age Underperform
EA said its Global Football segment, which features the EA SPORTS FC franchise, "experienced a slowdown as early momentum in the fiscal third quarter did not sustain through to the end." The segment had posted consecutive fiscal years of double-digit net bookings growth.
In addition, EA—which is set to announce its final third-quarter results on Feb. 4—said its Dragon Age franchise "engaged approximately 1.5 million players during the quarter, down nearly 50% from the company's expectations."
EA shares had risen 3% over the past 12 months entering Thursday.
Read the original article on Investopedia