EA Had Another Record Quarter. So Why Did the Stock Drop?
Electronic Arts (NASDAQ: EA) announced its latest earnings result and saw its stock drop over 7% the next day. The company achieved record numbers on a few of its financials and even declared a new dividend, but investors were not happy with its forward guidance.
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EA had record trailing-12-month cash from operating activities of $2.04 billion, driven by strong growth from its live services division. In fact, the company's entire revenue growth came from live services increasing from $3.36 billion to $3.9 billion over the last 12 months. With full game sales down because the release of FIFA 21 (EA's No. 1 franchise) was pushed back to October, it was nice to see live services pick up the slack.
Source Fool.com
