Electronic Arts saw its stock drop sharply on Thursday after the video game publisher reported weaker-than-expected financial results. The company cited underperformance in its soccer franchise as a key reason for the decline, sending shares to their steepest single-day drop since 1999 and among the largest yearly declines on record.
Earnings for the third quarter showed net bookings of $2.215 billion, down from previously expected between $2.4 and $2.55 billion. The company also lowered its full-year guidance to between $7 and $7.15 billion, below the previous range of $7.5 to $7.8 billion. Analysts have expressed cautious optimism, rating the stock equivalent of a hold.
The warning highlights significant weakness in EA’s most prominent soccer franchise since 1993, as its FIFA branding was replaced in 2022 with EA Sports FC. The company also noted that global football sales were expected to decline year-over-year, with online services facing further declines by fiscal 2025.
Earnings results for the third quarter are set to be released on February 4.
Source: https://www.cnbc.com/2025/01/23/ea-shares-plunge-19percent-on-track-for-worst-day-since-dot-com-bubble.html