EA Lowers 2010 Guidance

Electronic Arts announces it is lowering its 2010 financial guidance, blaming weak demand in Europe and a shift toward games with lower profit margins in North America. The publisher/developer lowered its adjusted profit outlook for the year to between 40 cents and 55 cents per share from its earlier outlook of 70 cents to $1.00 per share. They also announce a pessimistic outlook on the October-December quarter:
The company expects a third-quarter net loss to fall between 24 cents and 32 cents per share. Adjusted for changes in deferred revenue for digital content and online-enabled games, as well as restructuring charges and other items, EA expects earnings of 29 cents to 33 cents per share for the quarter, well below Wall Street's expectations of 56 cents per share.

EA is forecasting sales of about $1.23 billion to $1.25 billion during the quarter. Adjusting for those same factors, EA expected adjusted revenue of $1.33 billion to $1.35 billion, short of Wall Street's expectations of $1.42 billion in sales.