'FIFA' publisher EA hikes full-year revenue, profit forecast
By Anya George Tharakan
(Reuters) - Electronic Arts Inc's (EA.O: Quote) second-quarter revenue edged past analysts' estimates and the videogame publisher raised its full-year revenue and profit forecast, indicating strong interest for its recently launched games.
"FIFA 17," the newest version of EA's top-selling soccer franchise, debuted at the end of September, while the company launched the highly anticipated "Battlefield 1" and "Titanfall 2" shooter games in October.
Those games will face competition from Activision Blizzard Inc's (ATVI.O: Quote) "Call of Duty: Infinite Warfare" and Ubisoft Entertainment SA's (UBIP.PA: Quote) "Watch Dogs 2", which will be released in time for the holiday-shopping season.
"We've always tended to be conservative this time of the year, but at the same time, more optimistic," EA Chief Financial Officer Blake Jorgensen said in an interview.
While EA's adjusted revenue forecast for the key holiday-shopping quarter was slightly below analysts' estimates, Jorgensen said the current quarter would most likely generate the biggest cash flow in the company's history.
EA's shares initially fell more than 3 percent in extended trading on Tuesday after the company issued its results, before reversing course to trade up 6 percent at $82.50.
Wedbush Securities analyst Michael Pachter attributed the initial dip in EA's shares to investors' "complete confusion" over how to reconcile the company's adjusted figures.