EA shares drop 7% after company lowers guidance due to weakness in soccer, other games
Posted: Jan 23, 2025
- Electronic Arts (EA) slashed its full-year bookings guidance, blaming underperforming games like EA Sports FC
- Revenue for fiscal third quarter expected to be $2.215 billion, down from previous guidance of $2.4 billion to $2.55 billion
- Full fiscal year net bookings guidance lowered to $7 billion to $7.15 billion, below previous guidance of $7.5 billion to $7.8 billion
- Weakness in EA's prominent soccer video game franchise seen since 1993
- "Dragon Age" game underperformed with 1.5 million players during quarter
- EA CEO Andrew Wilson attributed underperformance to Dragon Age and EA Sports FC 25
- EA expects Global Football sales to decline year-over-year, impacting live services
- Updates to EA Sports FC 25 were well-received by players
- Warning issued ahead of planned third-quarter earnings on Feb. 4.
- Electronic Arts (EA) slashed its full-year bookings guidance, leading to a 7% drop in share price
- Weakness in underperforming games, especially in the soccer franchise EA Sports FC, contributed to the shortfall
- For the fiscal third quarter, net bookings are expected to be $2.215 billion, below previous guidance
- Total net bookings for the full fiscal year are forecasted to be between $7 billion and $7.15 billion, down from earlier estimates
- The warning highlights a slowdown in the soccer video game franchise, previously known under the FIFA branding
- The role-playing game Dragon Age also underperformed, with 1.5 million players falling short of expectations by nearly 50%
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