The 10-second takeaway
For the quarter ended Sep. 30 (Q2), Electronic Arts met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded and GAAP loss per share grew.
Margins dropped across the board.
Electronic Arts logged revenue of $1.08 billion. The 23 analysts polled by S&P Capital IQ expected to see sales of $1.08 billion on the same basis. GAAP reported sales were 0.6% lower than the prior-year quarter's $715.0 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.15. The 23 earnings estimates compiled by S&P Capital IQ anticipated $0.10 per share. GAAP EPS were -$1.21 for Q2 compared to -$1.03 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 37.4%, 220 basis points worse than the prior-year quarter. Operating margin was -51.5%, 140 basis points worse than the prior-year quarter. Net margin was -53.6%, 600 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $1.30 billion.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 1,954 members out of 2,224 rating the stock outperform, and 270 members rating it underperform. Among 512 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 445 give Electronic Arts a green thumbs-up, and 67 give it a red thumbs-down.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Electronic Arts. Motley Fool newsletter services recommend Electronic Arts. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.