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Finance

EA will report $111m loss, say analysts

Mon 28 Jul 2008 11:05am GMT / 7:05am EDT / 4:05am PDT
Finance

Publisher is expected to experience stock volatility amid fears of uncertain future titles' release dates

EA will report a loss of USD 111 million, or USD 0.33 cents per share, compared to a loss of USD 132 million, or USD 0.42 cents per share, last year, for the quarter ended June 30, according to a poll of analysts by Thomson Financial.

The publisher's revenue for the quarter is expected to jump 60 per cent to USD 633.9 million - up from USD 431 million a year ago.

Analysts' main concerns aren't with EA's actual performance but with investor expectations, as this is the first quarter EA hasn't provided quarterly guidance, reports Forbes.

They have speculated that the company might not be able to release new franchise titles, such as Dead Space and Mirror's Edge, on time nor are they confident the games will sell well.

Wedbush Morgan analyst Michael Pachter has warned that EA stock price could be hit if the company fails to meet the consensus earnings estimate. The company's shares hit a 52-week low of USD 43.13 on July 11 but closed up USD 0.51 cents to USD 47.73 in trading July 25.

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