Electronic Arts Inc. (NASDAQ: ERTS) is rising after the close despite some mixed reports. The video game giant posted non-GAAP earnings at $0.06 EPS on $1.15 billion in revenues versus Thomson Reuters consensus estimates of $0.07 EPS and $1.13 billion in revenues. More importantly, EA reported more cost reductions and will close several facilities and make job cuts of 1,500 by March 31, 2010. While it will have $130 to $150 million in restructuring costs, this will give it $100 million in expected annual savings. The new guidance for 2010 is $0.70 to $1.00 EPS and $4.20 to $4.40 billion in revenues. Thomson Reuters has estimates at $0.89 EPS on $4.27 billion in revenues. If were not for the cost cuts, this would be ugly as sin.
EA shares are up 2% at $19.95 after closing up 2.8% at $19.53 in regular trading. While there were over 12 million shares in the regular trading session, we have seen 950,000 shares trade in the after-hours session since the $PM closing bell.
JON C. OGG
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