Electronic Arts Tops Estimates as Sales of Digital Games GrowBy
Electronic Arts Inc. topped Wall Street profit estimates after the video-game giant behind “FIFA” and “The Sims” brought established titles to new platforms.
Fourth-quarter earnings grew to $1.28 a share, excluding some items, Electronic Arts said on Tuesday. That compared with an average analyst estimate of $1.16.
More of Electronic Arts’ games are now sold digitally, helping bolster the results. Those sales are typically more profitable because they don’t involve creating physical media. Digital bookings now account for 68 percent of the Redwood City, California-based company’s total.
“We expanded the reach of our leading franchises like ‘FIFA,’ ‘Battlefield’ and ‘The Sims’ to more players,” Chief Executive Officer Andrew Wilson said in a statement.
Revenue also topped projections, helping send the shares up as much as 3.9 percent to $128.70 in late trading. The stock was up 18 percent this year through Tuesday’s close.