Electronic Arts Earnings Ahead of Expectations
- May 11, 2022
- Scott Peters
Electronic Arts March quarter results were ahead of expectations and the game publisher increased dividend 12% and repurchased $1.3 billion of shares. The company also plans to end its partnership with FIFA.
Electronic Arts Inc reported fiscal year 2022 fourth quarter ending in March sales increased 38% to $1.8 billion and net income soared three-fold to $225 million.
Diluted earnings per share increased to 80 cents from 26 cents a year ago.
The company repurchased 2.5 million shares for $325 million in the quarter matching the dollar amount for the purchase of 2.4 million shares.
For the year, the company purchased 9.5 million shares for $1.3 billion.
The company increased dividend per share by 12% to 19 cents from a year ago and payable on June 22, 2022 to shareholders of record as of the close of business on June 8, 2022.
Guidance and Outlook
The company also guided fiscal year 2023 between $7.6 billion and $7.8 billion and earnings per share between $2.79 and $2.87 and net income between $793 million and $815 million in the year.
The game publisher guided operating cash flow in the year between $1.6 billion and $1.65 billion.
The company expects sales or net bookings between $7.9 billion and $8.1 billion.
In the fiscal year 2023 first quarter sales are expected to be between $1.675 billion and $1.725 billion, earnings between $216 million and $240 million, and diluted earnings per share between 76 cents and 85 cents.
Company and Stock
Electronic Arts is headquartered in Redwood City, California and employs about 10,000 people.
Electronic Arts stock jumped 12.3% to $125.38 after the game publisher reported March quarter results and the stock has declined 9% in the year so far.