Fast Fool Facts: Easygoing Electronic Arts

Newly restructured game king Electronic Arts (Nasdaq: ERTS  ) reported its Q1 earnings on Aug. 1.

  • Adjusted net loss per share clocked in at $0.22, up from a net loss per share of $0.12 the previous year. Still, EA beat analysts' predictions that the company would lose $0.34 per share. The company must have been pleased by this showing, since it increased its guidance for the fiscal year.
  • North American and Asian sales declined by at least 20% each. However, Europeans not only purchased 21% more games year over year, but also beat North Americans in total sales. 
  • Electronic Arts has 10 new games in its pipeline, including the highly anticipated Rock Band, which will compete with Activision's (Nasdaq: ATVI  ) Guitar Hero
  • During the quarter, Electronic Arts continued its expansion by acquiring stakes in two online game companies: The9 (Nasdaq: NCTY  ) in China and Neowiz in South Korea. 

(Figures in millions, except per-share and CAPS data)

Q1 2007

Q1 2006

Change

Revenue

$395

$413

(4.4%)

Net Income

($132)

($81)

N/A

EPS

($0.42)

($0.26)

N/A

CAPS Score (out of 5)

Outperform

Underperform

CAPS

***

1039

108

Dig deeper with further Foolishness:

Both Electronic Arts and Activision have been singled out by our Stock Advisor newsletter, which is currently outperforming the S&P 500. Grab a free 30-day pass to the newsletter to get plugged into the action.

Fast Fool Facts are designed to give you informative earnings highlights in a timely fashion. Check back at Fool.com for a more in-depth discussion of this company and others.

Foolish research associate Katrina Chan does not own shares in any of the companies mentioned.  The Motley Fool has a disclosure policy worth reading.


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