REDWOOD CITY, Calif. - Electronic Arts (NASDAQ:EA) reported better-than-expected second-quarter revenue and raised its full-year outlook, sending shares up 1.2% in after-hours trading.
The video game publisher posted Q2 revenue of $2.08 billion, surpassing analyst estimates of $2.04 billion and marking a 6% increase YoY. However, adjusted earnings per share came in at $1.11, significantly below the $2.02 consensus estimate.
EA's net bookings, which include deferred revenue, reached a Q2 record of $2.079 billion, exceeding the company's guidance range of $2.050 billion. The strong performance was driven by the EA SPORTS portfolio, with American Football on track to exceed $1 billion in net bookings for fiscal 2025.
"EA delivered another strong quarter with record Q2 net bookings, driven by our incredible teams, broad portfolio and technology leadership," said Andrew Wilson, CEO of EA. "The momentum in our business reinforces our strategic vision to deliver innovative experiences and interactive entertainment that deepens and expands engagement across our global communities."
For the third quarter, EA forecasts revenue between $2.4 billion and $2.55 billion, compared to analyst expectations of $2.535 billion. The company raised its full-year revenue outlook to $7.5-$7.8 billion, up from its previous guidance of $7.3-$7.7 billion.
Stuart Canfield, CFO of EA, expressed confidence in the company's ability to drive long-term value creation through increased scale, top-line growth, improved margins, and greater cash flow.
The company's live service offerings continued to perform well, with Global Football seeing growth across all platforms in Q2. The Sims 4 also expanded its player base, with over 15 million new players joining in the past year.
EA repurchased 2.6 million shares for $375 million during the quarter and declared a quarterly cash dividend of $0.19 per share.
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