Electronic Arts tops expectations
Electronic Arts Inc., the world’s biggest video game publisher, beat Wall Street’s earnings expectations with strong fiscal second-quarter sales on Thursday, though profits fell 57 percent, hurt by the new accounting requirement of stock option charges.
Redwood City, Calif.-based EA also boosted its fiscal year outlook.
Net income for the three months ended Sept. 30 was $22 million, or 7 cents per share, compared with $51 million, or 16 cents per share during the same period last year, the company said Thursday. The results included stock-based compensation charges of $33 million.
On an adjusted basis, excluding certain items, the Redwood City, Calif.-based company said it would have earned $65 million, or 21 cents per share, compared with $46 million last year.
Revenue rose 16 percent to $784 million from $675 million a year ago.
Analysts polled by Thomson Financial were expecting earnings of 2 cents per share on sales of $672.2 million.
Shares of EA closed at $53, up 24 cents, on the Nasdaq Stock Market. In after-hours trading, the shares gained $3.50, or 6.6 percent, to $56.50.
“Luxury automaker BMW AG said Thursday that its third-quarter profit slipped 0.7 percent, missing market expectations, because it had to pay higher taxes and retooled its lineup of car models.
“MGM Mirage Inc. said Thursday its third-quarter profit climbed 68 percent as new shows, amenities and casino openings boosted revenue for the world’s second-largest gambling company.
Net income grew to $156.3 million, or 54 cents per share, in the July-September period from $93.2 million, or 31 cents per share, in the third quarter a year ago.
Revenue rose 5 percent to $1.90 billion from $1.81 billion last year.
“CBS Corp. reported lower net earnings Thursday from a year ago, when it was still combined with Viacom Inc., but operating earnings rose. The company also announced a share buyback of up to $1.5 billion.
Investors have been pressing CBS to say what its plans are for its growing cash stockpile, which is currently $3.2 billion, up from $1.7 billion a year ago. The cash has been coming from good operating results as well as the sale of its parks business and more than two dozen radio stations.
On a reported basis, CBS’s third-quarter earnings fell sharply to $316.9 million, or 41 cents per share, versus $708.5 million, or 90 cents a share, in the same period a year ago, when it was still reporting as a combined company with Viacom.