Electronic Arts’ (ERTS) Q2 beat the Street: Non-GAAP revenue increased 34% to $816 million, beating expectations of $736 million. The company nearly broke even during the quarter, narrowing its net loss to $6 million from a $135 million loss during the prior year’s quarter.
The results were largely driven by a strong release of The Sims 3, which sold 3.7 million copies, and solid performance at its EA Digital unit. Digital revenues grew 38% during the quarter to $124 million. In addition, mobile revenue grew 14% to $50 million during the quarter, likely driven by iPhone sales.
Despite the better-than-expected results, the company maintained its full-year 2009 guidance of about $4.3 billion and EPS of $1.00.
Analysts are starting to weigh in with their comments. UBS analyst Brian Pitz said the company “is likely being conservative” with its full-year guidance (we agree). Meanwhile the ERTS shares are down slightly in after-market trading, indicating investors were likely hoping that management would increase its full-year guidance after beating expectations during the quarter.
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