Boston, MA 05/09/2014 (wallstreetpr) – Electronic Arts Inc. (NASDAQ:EA) makes its bread from developing and distributing games software. But the past years have seen the company’s earnings wit as competition intensified and old titles lose their attraction in the market. However, in the latest quarter, the company has shown that it still has enough gas to compete and generate value for the shareholders.
The company reported 4Q2014 earnings that exceeded a year earlier quarter and expects the current quarter to maintain the positive trend. However, when talking about the success in 4Q, it is hard to take next-generation games console makers Microsoft Corporation (NASDAQ:MSFT) and Sony Corp (ADR) (NYSE:SNE) out of the picture. The companies launched a fresh line of consoles last November and the devices were received well, making millions of unit sales in a matter of weeks.
While Microsoft and Sony continue to celebrate their big sales from the new devices, it is emerging that Electronic Arts Inc. (NASDAQ:EA) also gained from the launch of the upgraded consoles. The company reported significant sale of new titles designed for the upgraded gaming equipment that launched on the market in November. The strong sales of new titles offset the tepid performance of the older titles.
Electronic Arts Inc. (NASDAQ:EA) expects to cash in on FIFA games through old and new titles that it expects to offer through retailers and online. In any case, online sales accounted a big portion of revenue in the latest quarter, and the company promised to give it’s all to support digital sales. Also, the company is keen on penetrating the mobile market.
A new CEO equals a turnaround
Electronic Arts Inc. (NASDAQ:EA)’s latest quarter success can be traced to the execution of CEO Andrew Wilson. The company failed under John Riccitiello who was ejected in March 2013. The coming of Mr. Wilson to the scene has not only helped repair the company’s earnings but has also inspired investor confidence.
4Q at a glance
The company reported a profit of $914 million or 48 cents per share. Wall Street was looking for 11 cents per share in the quarter.
Electronic Arts plans to repurchase $750 million worth of shares through May 2016.
