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Electronic Arts third-quarter forecast disappoints as "Medal" lags
October 30, 2012 / 8:46 PM / in 5 years

Electronic Arts third-quarter forecast disappoints as "Medal" lags

SAN FRANCISCO (Reuters) - Video game publisher Electronic Arts Inc forecast third-quarter earnings below Wall Street targets on Tuesday after its “Medal of Honor: Warfighter” title fell short of expectations for a crowded holiday season.

Electronic Arts' Chief Executive Officer (CEO) John Riccitiello introduces their new lineup during the EA press conference as part E3 in Los Angeles, California June 4, 2012. REUTERS/Gus Ruelas

The company reported fiscal second-quarter earnings - excluding certain items - of 15 cents per share, beating the Street view of 11 cents per share as cost cuts took effect.

But it forecast third-quarter earnings in the range of 50 cents to 60 cents, lower than the Street’s view of 71 cents, according to Thomson-Reuters I/B/E/S.

“Our Q3 looks soft mostly due to ‘Medal of Honor,'” CEO John Riccitiello said on a call with analysts.

For the three months ended September 30, the company posted revenue of $711 million, compared with $715 million a year ago. It reported a net loss of $381 million, or $1.21 cents per share, compared with $340 million, or $1.03 per share a year ago.

Adjusted revenue rose about 5 percent, to $1.08 billion, from a year ago. That was in line with analyst estimates, according to Thomson-Reuters I/B/E/S.

Reporting By Malathi Nayak; Editing by Ciro Scotti

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