(Finance) – Shares plummet Electronic Arts which marked a drop of 18.3% on the Nasdaq settling at $116.25 per share. The big name in video games, famous above all for Football, today discounts the cutting booking forecasts for the third quarter and full fiscal year 2025, due to weak demand for football and the Dragon Age role-playing game. Because of this, Bank of America cut the rating on the stock from Buy to Neutral and the Target Price from 170 to $130.
Electronic Arts’ initial predictions for fiscal year 2025 they expected medium-digit growth (+5/6%) of reservations of live services. Instead the company now plans a medium-digit decline (-5/6%). What disappoints is the football business which, after two consecutive years of double-digit growth, has lost momentum. But also the Dragon Age role-playing gamefor which at least 3 million players were expected, did not go well. having engaged just 1.5 million players during the quarter, down nearly 50% from the company’s expectations.
Consequentially, EA now expects revenue net of approx $2.215 billion for the third quarter tax and an updated range between 7 and 7.15 billion dollars for fiscal year 2025. For the fiscal third quarter, EA now expects GAAP net revenue of approximately $1.883 billion and GAAP diluted earnings per share of approximately $1.11.
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