What happened 

Shares of video game giant Electronic Arts Inc. (NASDAQ:EA) jumped as much as 15% in trading Wednesday after the company reported fiscal fourth-quarter earnings. As of 12:51 p.m. EDT, the stock was up 14.3%. 

So what

Revenue was up 16.7% in the quarter to $1.53 billion and net income fell 37% to $566 million, or $1.81 per share. The decline was largely attributable to an income tax credit in last year's quarter. 

Kid playing PC video games in front of a large monitor.

Image source: Getty Images.

Results topped the $1.49 billion in revenue and earnings of just $1.63 per share that analysts had expected. For fiscal 2018, management forecast earnings of $3.57 per share, below the estimate of $4.16 from analysts, but that's not the focus for investors today. 

Now what

EA has made a solid transition to the new world of mobile games and digital downloads, getting $934 million of $1.53 billion in revenue from digital sources. The company's transition from dependence on hit games each year to a more consistent revenue model is giving investors confidence in the business's performance going forward. And with more and more people looking for ways to play games, whether it's on a smartphone or a new console, EA is well-positioned to offer compelling games that will be highly profitable for investors. 

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.