EA Q2: Earnings Guidance Weak, Company Laying Off 6%

EA said that after its 2Q loss, it’s laying off 6% of its workforce, or 540 employees. The move will save the company $50 million annually before taxes.

EA posted $1.126 billion in revenue for 2Q, and a $0.06 per share loss, beating analyst estimates on revenue, and staying inline with them on earnings. But the company lowered earnings guidance, and it is slightly below analyst expectations for the current fiscal year, $1.00-$1.40 vs. $1.42 from the analysts.

The company did see big sales from perennial heavyweight Madden NFL Football. The game sold 4.5 million copies in the quarter, which was flat y/y, but they released it on fewer platforms than last year. Spore, the newest game from Sim City creator Will Wright, sold 2 million copies in the quarter and is the #1 PC game.

Revenue: $1.126 billion, up 20%, higher than analyst expectations of $1.08 billion
EPS: -$0.06, down from $0.27 y/y, in line with analyst expectations
Operating Income: -$364 million, down from -$274 million y/y

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