Investing.com -- Electronic Arts (NASDAQ:EA) reported Tuesday a fiscal fourth-quarter loss, though revenue topped Wall Street estimates, driven by stronger demand for its FIFA franchise.
Electronic Arts stock trades about 2.5% higher in pre-market Wednesday.
Electronic Arts announced a loss of $0.04 a share on revenue of $1.87 billion. Analysts anticipated EPS of $0.42 on revenue of $1.75B. Net bookings for Q4 rose to $1.95B, up 11% from the same period a year ago.
"Record live services performance and increased engagement, particularly from our EA SPORTS FIFA franchise, drove better-than-expected Q4 net bookings, capping a strong finish to the fiscal year," the company said.
Looking to fiscal 2024, the company guided EPS in a range of $3.30 to $3.81 on revenue of between $7.3B and $7.7B, in line with estimates of $3.69 and $7.54B, respectively. Net bookings are expected to be approximately $7.30B to $7.7B, the company said.
Goldman Sachs analysts hiked the price target on EA stock to $129 per share.
"We still frame EA as a company with growth mostly driven by their core portfolio, mobile strategy, international expansion, M&A opportunities and organic projects, and long-term EBITDA margin expansion to be realized in the out years," they said in a note.
Roth MKM analysts also hiked the price target as they went to $138 per share (from $130).
"We are raising our FY24 ests on higher premium game and mobile projections. Top franchises, FIFA, Apex Legends, and Madden remain strong and there is early optimism towards Star Wars Jedi: Survivor, which is seen as the year's key growth driver. We remain concerned about the development pipeline, both from a timing and an execution standpoint," they said.
Additional reporting by Senad Karaahmetovic