Electronic Arts Stock Plunges on Outlook Cut as Soccer Game Demand Slumps
Key Takeaways
- Electronic Arts shares plunged Thursday, a day after slumping demand for its EA SPORTS FC 25 video game prompted the company to cut its outlook.
- The company projected net bookings to be $2.22 billion for the fiscal third quarter, down from $2.4 billion to $2.55 billion previously.
- EA also cut its fiscal 2025 net bookings forecast to a range of $7 billion to $7.15 billion, down from $7.5 billion to $7.8 billion.
- The stock was the biggest decliner in the S&P 500 Thursday and closed at its lowest level since September 2023.
Electronic Arts (EA) shares plunged 17% Thursday, a day after slumping demand for its EA SPORTS FC 25 video game prompted the company to cut its outlook.
In preliminary results announced late Wednesday, the company said it expects net bookings to be $2.22 billion for its fiscal third quarter, which ended on Dec. 31. The company previously had forecast Q3 net bookings of $2.4 billion to $2.55 billion, while analysts polled by Visible Alpha expected $2.44 billion.
EA also cut its fiscal 2025 net bookings forecast to a range of $7 billion to $7.15 billion, down from $7.5 billion to $7.8 billion.
EA stock, which was the biggest decliner in the S&P 500 on Thursday, closed at its lowest level since September 2023.
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EA SPORTS FC 25, Dragon Age Underperform
EA said its Global Football segment, which features the EA SPORTS FC franchise, "experienced a slowdown as early momentum in the fiscal third quarter did not sustain through to the end." The segment had posted consecutive fiscal years of double-digit net bookings growth.
In addition, EA—which is set to announce its final fiscal third-quarter results on Feb. 4—said its Dragon Age franchise "engaged approximately 1.5 million players during the quarter, down nearly 50% from the company's expectations."
UPDATE: This article has been updated with recent share price information and a stock price chart.
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