Electronic Arts disappointed investors again with weaker-than-expected earnings and revenue forecasts, driving shares of the game publisher lower.
Investors on Monday scrutinized EA's forecast for the fiscal year, after the company—which is struggling with high costs and a lackluster slate of games—had sharply cut its guidance for two consecutive years.
For the fiscal year ending March 2011, EA forecast earnings of 50 cents to 70 cents a share on revenue of $3.65 billion to $3.9 billion on a non-GAAP basis. Both lagged Wall Street's forecast for 74 cents and $4.07 billion, according to Thomson Reuters.
EA had a difficult 2009, slashing jobs and narrowing its game portfolio amid an industrywide slump in video game sales. Investors have also grumbled about the company's leadership, though some analysts say EA's game slate for early 2010 is strong.
EA's pipeline for the March quarter included "Mass Effect 2," "Army of Two" and "Dante's Inferno."
The publisher of "Madden NFL" and "Mass Effect" reported on Monday a net loss of $82 million, or 25 cents a share, in the fiscal third-quarter ended Dec. 31, versus a loss of $641 million, or $2 a share, in the year-ago period.
Excluding items, EA earned 33 cents a share, versus the average analyst estimate of 31 cents a share.
Revenue fell 25 percent to $1.2 billion, while non-GAAP revenue came in at $1.35 billion. Wall Street was estimating $1.34 billion.
For the current quarter, EA forecast non-GAAP earnings of 2 cents to 6 cents a share on non-GAAP revenue of $800 million to $850 million.
Shares of EA fell more than 7 percent in extended trading Monday. Get after-hour quotes for Electronic Arts.
