Electronic Arts' (NASDAQ:EA) stock dropped by as much as 6% following the video game publisher's latest quarterly earnings announcement. But the sell-off wasn't due to any bad surprises in the quarter that just closed.
In fact, sales improved by 57% over the prior year, while profitability jumped a full six percentage points to reach an impressive 70%. Both the revenue and profit figures were well above EA's guidance -- and ahead of Wall Street's expectations, too.
In the video below, Fool contributor Demitrios Kalogeropoulos discusses the recent results, noting that they were powered by a 28% spike in digital receipts, and a few hit game launches. However, investors weren't happy to hear that the release of two of EA's highly anticipated games, Battlefield Hardline and Dragon Age: Inquisition, would be delayed. That shouldn't worry long-term shareholders, Demitrios argues, as a short delay will likely just push sales and profits from these games into future quarters. Watch the video for Demitrios' full take.
Demitrios Kalogeropoulos has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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.