EA misses targets and offers weak forecasts for annual bookings (updated)

Video game publisher Electronic Arts forecasted full-year bookings for the coming year that fell below Wall Street’s expectations.

The company’s forecast fell short of analyst expectations for the fiscal year ending March 31, 2025. The midpoint of EA’s forecast range $7.3 billion to $7.76 billion was $7.5 billion, and that fell short of analyst expectations of $7.7 billion for the FY25 year.

The Redwood City, California-based company saw its shares fall 4.75% to $124.05 in after-hours trading. The weak news comes on the same day as Microsoft’s announcement that it would close multiple studios today on similar concerns.

In just four months, the layoffs in the game industry are just about at the same level as the 10,500 layoffs that happened in 2023. Last night, Nintendo also missed earnings targets and forecast a relatively weak year ahead.

Gamers have been cutting back on discretionary spending as they return to post-COVID activities such as heading outdoors or traveling. EA cut about 5% of its workforce in February as part of its own restructuring program.

“This year, EA delivered bigger, bolder world class entertainment that engaged and connected hundreds of millions of players and fans,” said Andrew Wilson, CEO of EA, in a statement. “We will continue to build on this strong momentum through an incredible pipeline of new experiences, starting with College Football in FY25, positioning us for accelerated growth in FY26 and beyond.”

EA Sports FC 24
EA Sports FC 24

“EA’s FY24 was highlighted by record cash flow and strong earnings growth driven by EA Sports FC and Madden NFL,” said Stuart Canfield, CFO of EA, in a statement. “With strong conviction in our future, we are announcing an expanded stock repurchase program. We look forward to sharing more about our long-term strategy and financial framework at our investor day this fall.”

The company forecast fiscal year 2025 bookings at about $7.3 billion, compared to expectations of $7.76 billion, for the year ended March 31, 2025. That midpoint is below estimates of $7.7 billion. Net income is expected to be $904 million to $1.085 billion.

For the fourth fiscal quarter just ended on March 31, the company posted bookings of $1.67 billion, missing estimates of $1.77 billion. And in the first quarter, EA said books would be $1.15 billion and $1.25 billion, compared with estimates of $1.44 billion.

The company earned $1.37 per adjusted share in the fourth quarter, compared with estimates of $1.52 per share.

During the quarter, EA delivered 11 titles and over 600 content updates in the year, including four non-annual sports titles and the successful rebrand of EA Sports FC. The company said the global football franchise grew net bookings by high-teens percent in FY24. And EA said that during FY24, Madden delivered record net bookings, up 6% year-over-year and double-digit growth in weekly average users for both Madden NFL 24 and Madden Mobile.

Update: 5/7/25 at 1:45 pm Pacific — Updated with corrected figures.

Author: Dean Takahashi
Source: Venturebeat
Reviewed By: Editorial Team

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