EA Shares Plunge on Earnings Warning After Weak Soccer, ‘Dragon Age’ Games
Slower sales of the sports title account for majority of the miss.
Shares of Electronic Arts Inc. plunged 18% Thursday morning, the biggest decline since 2008, after the gaming company warned its financial results would be weaker than expected due to poor sales results of two titles released over the holidays.
Bookings fell to about $2.22 billion in the third quarter ended Dec. 31, missing forecasts of $2.4 billion to $2.55 billion, the Redwood City, California-based publisher said in a preliminary statement Wednesday. EA also reduced projected bookings for the 2025 fiscal year to a range of $7 billion to $7.15 billion. Its previous guidance was for $7.5 billion to $7.8 billion. Bookings from live services — revenue generated after the initial purchase of a game — will decline by a mid-single-digit percentage. The company had earlier expected a mid-single-digit increase in bookings.
