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Electronic Arts (EA) stock drops on weak Q4 2021 earnings guidance

Electronic Arts (EA) has detailed its Q4 2021 earnings guidance.

Donovan Erskine

February 2, 2021 2:10 PM

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As fiscal quarters come to a close, some of the biggest companies in the world are releasing financial reports to investors and the public. Electronic Arts is not only a monolith in gaming, but one of the biggest corporations in North America. Electronic Arts (EA) has released its Q3 earnings. EA stock also dropped a bit following today's report, which revealed weak earnings guidance for EA's Q4 FY2021.

Electronic Arts’ Q3 earnings for the 2021 fiscal year were shared in a detailed press release on its official website. “We delivered another strong quarter, driven by live services outperformance in Ultimate Team and Apex Legends,” said EA COO and CFO Blake Jorgensen, citing Madden NFL 21 and Apex Legends as two big earners for the company over the last quarter. “We are raising our net bookings outlook for the full year on the strength we continue to see in our business. Looking further ahead, even with the upside this year, we anticipate delivering growth in fiscal 2022, driven by the next Battlefield,” he continued.

The company also outlined its earnings guidance for Q4 2021, which led to a drop in Electronic Arts’ (EA) stock value. That said, the company still has strong expectations for the year. EA is projecting itself to earn a net revenue of $5.6 billion dollars. With juggernauts like Madden sure to be a financial hit, and a new Battlefield game on the way, there’s a lot of potential for EA in the future.

The news of Electronic Arts’ Q3 earnings and its earnings guidance for Q4 come on the same day as the company announced the return of EA Sports College Football, as well as revealed a new trailer for the upcoming Mass Effect: Legendary Edition. For more on Electronic Arts (EA), stick with us right here on Shacknews.

Donovan Erskine

News Editor

Donovan is a young journalist from Maryland, who likes to game. His oldest gaming memory is playing Pajama Sam on his mom's desktop during weekends. Pokémon Emerald, Halo 2, and the original Star Wars Battlefront 2 were some of the most influential titles in awakening his love for video games. After interning for Shacknews throughout college, Donovan graduated from Bowie State University in 2020 with a major in broadcast journalism and joined the team full-time. He is a huge Scream nerd and film fanatic that will talk with you about movies and games all day. You can follow him on twitter @Donimals_