Electronic Arts slumps in afterhours after guidance cut

Investing.com -- Electronic Arts slumped in afterhours trading Wednesday after the video game maker cut its bookings guidance for the thid quarter and the full year following weaker demand for its soccer franchise, EA Sports FC and role-playing game Dragon Age.  

Electronic Arts Inc (NASDAQ:EA) fell more than 8% in recent afterhours trading.

For the fiscal third quarter ending Dec. 31, EA said it now expects to report about $2.22 billion in net bookings, down from prior guidance of $2.4B to $2.55B. Earnings for the December quarter is expected to come in at $1.11 per diluted share on revenue of about $1.88B, compared with prior guidance for diluted earnings of $0.85 to $1.02 on revenue of $1.88B to $2.03B.

“During Q3, we continued to deliver high-quality games and experiences across our portfolio,” EA CEO Andrew Wilson said on Wednesday. “However, Dragon Age and EA SPORTS FC 25 underperformed our net bookings expectations.”

The drag on Q3 performance is expected to dent full-year net bookings, which is now expected in a range of $7B and $7.15B, compared with prior guidance of $7.5B to $7.8B.